KARACHI, Sept 16: Physical trading on the cotton market on Monday picked up as spinners tried to grab the available lots with the ginners followed by reports that arrivals of phutti have slowed down.

Unlike the previous couple of sessions, prices remained stable and resisted fresh decline despite hasty unloadings by some of the ginners.

Most of the deals were finalized between Rs1,925 to Rs1,980, showing a modest improvement over the weekend rates. Punjab variety on the other hand remained weak as prices further eased because of quality factors.

The stepped up mill buying below Rs2,000 per maund reflects that sailing on the export front is fairly encouraging at least for the current quarter ending Sept 30, but what the new quarter has in store will determine the local price outlook.

Floor brokers said some of the leading spinners are making guarded covering purchases against their forward sales of cotton yarn amid hopes that world prices may ease further making import competitive.

The general thinking in the textile sector is that New York cotton futures prices are heading to breach through the 40 cents barrier in due course and any further fall below it could make imports competitive, they added.

Last season, spinners and mills have imported about 1.2m bales after world prices ruled between 30 to 38 cents per lb after having fallen at one stage below 30 cents per lb.

But currently the market direction is being guided by the growers who slowed down arrivals of phutti when prices fall below their parity levels and flood the market when prices rise.

Official spot rates were, however, further lowered by Rs15 per maund to Rs1,950 without 15 per cent sales tax in line with Saturday’s decline.

Ready business was active as till late in the evening about 6,000 bales changed hands as under:

SINDH TYPE: 400 bales, Sultanabad at Rs1,850, 100 bales, Mirpurkhas at Rs1,925, 400 bales, Tando Adam at Rs1,950, 200 bales, at Rs1,980, 200 bales, Shahdadpur at Rs1,950, 400 bales, at Rs1,975, 200 bales, at Rs1,970, 1,000 bales, Sanghar at Rs1,950, 400 bales, Nawabshah at Rs1,975, and 200 bales, Sakrand at Rs1,975.