KARACHI, June 8: The cotton market on Tuesday stayed firm despite reports of sharp decline in New York cotton futures as ginners held on to their positions rather than following the price trend on the New York Cotton Exchange.

A section of leading spinners, who still needs substantial quantity of lint was, however, in two minds and could not precisely decide whether to go for the foreign stuff or await for further decline, dealers said.But some of them who are not inclined to further risks on the supply front in the backdrop higher export orders are said to be "very much in the foreign market and are active buyer at 56 cents per lb," they added.

On late Monday night closing, New York cotton futures fell by 1.27 and 1.45 cents per lb at 56.53 and 56.30 cents for both the ruling July settlement and the new crop October delivery, respectively.

Cotton analysts predict further fall in world prices owing to higher world production and lower annual consumption by the spinning sector throughout the consuming countries.

According to official figures released by the International Advisory Cotton Committee, world production had recorded an increase of eight per cent over the previous figure and there would be a surplus of about 4m bales after meeting the entire world demand.

New York cotton futures are giving highly erratic price movements since the production reports was out and had lost about 10 cents per lb since then, and there are predictions of further fall in coming sessions, the analysts added.

They said local prices should have shown a sympathetic decline, but a short crop of about 9.8m bales continued to keep them on the higher side. However, some of the spinners were active buyers around the prevailing selling prices being offered by the ginners and lifted stray lots to cover their short positions.

Spot rates were quoted unchanged at Rs3,075 per maund but some of the deals were finalized at slightly higher rates depending on quality premiums. Ready offtake was light totalling about 4,000 bales, the following being some of the notable deals: 300 bales, Khanpur at Rs3,200; 1,000 bales, each from Khanpur and Liaquatpur at Rs3,100; and 600 bales, low-mic Rasoolabad at Rs2,510.