KARACHI, Jan 26: Physical activity on the cotton market on Wednesday was modest as most of the spinners were not ready to make bigger commitments at the prevailing price apparently anticipating some easing in a tight supply position.

"But ginners are not inclined to lower their asking prices as unlike the previous seasons their holding capacity is pretty strong. Moreover, falling unsold stock has provided them the needed leverage to hold on to their positions and not to sell below their parity levels," brokers said.

"Spinners and mills fail to the exploit record crop figure, which generally trigger selling from the weak ginners and the consequent decline in prices", they said.

Cotton analysts said ginners were well-aware about the supply and demand figures and were a little worried over the falling mill demand on the perception that spinners would have to come to them before the new crop reached the market.

Ginners are eyeing the annual mill consumption figure of 13m bales during the current season and have more than one reasons to hold on to their unsold position, they said.

"Unlike the previous season, when the market slipped into the hands of the growers, this season ginners are the ultimate trend-setters", they added. That was perhaps why those spinners who were short of their annual intake were active buyers at the current level amid predictions of fresh increase in prices during the next couple of weeks.

As a result, a big lot business was reported as a leading spinners group tried to grab the floating stock of fine lint from the upper Sindh ginners around Rs2,150.

There was, therefore, no change in the official spot rates, although some of the deals were done above them depending on quality. New York cotton futures on the other hand showed modest rise of 0.34 and 0.45 cents at 46.78 and 47.87 cents per lb for both the ruling March and the distant May settlements respectively.

Ready off-take was modest totalling about 12,000 bales, the following being some of the notable deals: 8,000 bales, Gothki, Dharki, Mirpur Mathelo and Pano Aqil, at Rs2,150, 200 bales, Sanghar at Rs2,025, 1,000 bales, Sadiqabad at Rs2,050 to Rs2,075, 800 bales, Rahimyar Khan at Rs2,150 and 400 bales, Ahmedpur East at Rs2,050.