KARACHI, July 5: Trading on the cotton market on Monday resumed on an easy note as spot rates were further lowered by Rs25 per maund in the absence of mill demand. Another bearish factor was said to be oversupply of the commodity on the world markets, having negative impact on prices the world over.

The absence of local spinners from the market reflects that prices are still higher as compared to international rates. The persistent decline over the last about one week has eroded about Rs200 per muand from the official spot rates but in physical trading, the fall was much bigger depending on the quality premium of lint involved in trading, brokers said.

Reports of fresh rain in the central and lower Sindh cotton belt has provided a temporary relief to the growers who are facing problems about the supply of irrigation water, they said.

"But reports of pest attack in some parts of the Sanghar area after the first rain worried growers as well as ginners fearing its spread to other fields," market sources said.

However, some others said the initial pest attack could easily be controlled by timely and an efficient spraying operation of pesticides. Floor brokers said ginners are worried over the continued absence of spinners and millers from the market despite the fact that they have lowered their asking prices.

"Spinners tactical move appears to force ginners to further lower their selling prices, notably for the fine lots they still hold in the upper Sindh and southern Punjab cotton belts," they said.

Meanwhile, reports coming from the lower Sindh and the central Punjab cotton belts indicate that the arrivals of phutti are fairly steady but most of the ginners are reluctant to resume operations before the deadline of Aug 14.

To resume ginning operations from Aug 15, was agreed in a Pakistan Cotton Ginners Association's recent meeting aiming at exhausting unsold stock of 0.4m bales lying with the ginners before the arrival of the new crop, market sources said.

On the ready counters, some of the brokers reported stray buying enquiries but as the price ideas of buyers and sellers find a meeting ground, ready off take remained light.