KARACHI, June 16: Physical activity on the cotton market on Wednesday fell to a low ebb as spinners and mills remained busy in assessing the impact of limit-fall in New York cotton futures on the local lint.

"There were buying offers from some of the local spinners but their offered prices were far below our parity levels", ginners said adding "local prices may not fallow the bear onslaught on the New York cotton futures as they are guided by supply and demand factors".

The limit-fall of 3.00 and 2.49 cents per lb in the ruling July and the new crop October settlement at 54.32 and 55.01 cents, respectively, on the New York Cotton Exchange has changed the lint price outlook the world over, brokers said.

Spinners and mills were claimed to be in the process of ascertaining whether or not to go for foreign stuff as the current rates were attractive enough to build up buffer stock, they said.

But some other brokers claimed that a few leading spinner groups had made forward deals around 54 cents per lb for end-July delivery and, analysts said, they had done a right job as cotton may not be that cheaper even tomorrow.

Already victim of falling mill demand, the local cotton market may face further recession despite the fact that ginners hold a manageable unsold stock worth Rs5 billion.

Analysts said the steep decline in New York cotton futures was not a permanent feature as speculative forces were so strong there that they could lift prices by limit-gains the very next day.

"Limit-fall or gain in the New York cotton futures is a temporary phase and spinners generally do not rely on this factor and plans for long-term basis," they said. However, physical activity on the local market remained at a standstill as both the buyers and the sellers were analyzing outside developments before making fresh commitments.

Meanwhile, reports coming in about the rain in some of the central Sindh cotton belt were said to be beneficial for the growth of tender plants. It was expected to make up the shortfall in the irrigation water for at least about two weeks.

There was no change in the official spot rates in the absence of ready business, which were firmly held at the previous levels. Ready business remained dull as till late in the evening no deal was reported by any of the leading local brokers.