KARACHI, Jan 28: Cotton market resumed trading on a listless note on Monday as spinners were conspicuous by their absence apparently anticipating further decline in prices.

The fall in mill demand was partly attributed to reported standoff on the export front and partly to large unsold stocks of cotton yarn lying with the spinners, having negative impact on their liquidity positions.

Stray lot, however, did change hands as a section of spinners holding short positions remained active buyer and lifted most of the lots offered around below Rs1,700.

Some of the spinners were after inferior lots being offered by the southern Punjab ginners at Rs1,250 on the lower side and Rs1,400 per maund on the higher side, although most of the deals were finalized directly between the ginners and the spinners.

“Unlike the previous seasons, the quantum of physical business through the local brokers has considerably declined as the local agents, notably in the southern Punjab have outwitted the counterparts operating in the premier market,” claims a floor broker.

That was perhaps why leading among the locals are not in a position to reports any deal transacted in the Punjab and some of them receive details late mostly second day.

“Absence of details of physical trading, notably the rates at which business transpired works against the interest of both the grower and the ginners as they did not know the comparative rates of the other stations,” says a leading broker.

The Karachi Cotton Association (KCA) daily fixes the official spot rates and announce them but they have no relevance to the rates at which the business is done.

The KCA being an apex body of the cotton trade should make its own arrangements daily to gather information about the details of physical business done at various stations to guide the ginners and growers, says a cotton analyst, adding “it will also eliminate the possibility of price manipulation by the brokers”.

Meanwhile, reports coming from the upcountry trading centres indicate that some of the leading exporters are in touch with the ginners and are making direct deals with them for the export lots.

Ready offtake was light as till late in the evening about 4,000 bales, mostly from the Punjab ginneries, changed hands.