KARACHI, July 7: The cotton market on Wednesday remained under pressure as official spot rates were further marked down by Rs25 maund as spinners again adhered to the sidelines.

During the last couple of sessions, prices have declined by Rs100 per maund as ginners holding modest unsold stocks are trying to get out of the market but failed to attract buyers even at the lower rates, dealers said.

Some of the local spinners who generally operate on short-term basis lift some of the lots that fall in line with parity levels, while leading among them who made substantial imports during the last couple of months keep to the sidelines, they said.

Trading activity, therefore, fell to a modest proportions, although some of the spinners from the southern Punjab cotton belt still hold an unsold stock of about 0.350m bales, including some fine lots.

Cotton analysts said the ginners apparently failed to assess the major change in the world price outlook in the backdrop of reports of higher production as compared to annual consumption and held on to their positions, anticipating increase in prices at the fag-end of season.

"But what the ginners had not taken into account was massive imports made by the spinners to make up the crop shortfall nearly on an emergency basis since last year," they said, adding "that perception put them at the receiving end."

Instead higher prices, which they were expecting, they are now obliged to sell at a loss to get out of the standoff, they said. The spinners too are not that happy position as bulk of their imports are well above the 60 cents per lb as compared to the prevailing New York cotton futures, which are ruling below 50 cents per lb.

New York cotton futures suffered a fresh decline of 0.75 cents per lb for the matured July contract at 46.50, while the new crop October delivery managed to finish fractionally higher at 49.49, up 0.2 cents per lb.

Official spot rate were further lowered by Rs25 in the absence of mill buying as some of the deals in the ready section were done as low as Rs2,400 per maund. In the ready section, stray lots changed hands in the southern Punjab cotton belt but details were not immediately available, brokers said.