KARACHI, Nov 21: Physical activity on the cotton market on Wednesday was relatively slow as spinners were not inclined to chase prices further higher at least for the near term.

Both leading spinners and mills withdrew to the sidelines after ginners raised their asking prices to Rs2,225 per maund and the consequent pause in ready trading.

The pause came after leading group of spinners purchased about 10,000 bales from the Punjab ginners between Rs2,200 to 2,225 per maund and ginners further raised their asking prices.

However, the pause appears to be a technical breather and spinners are expected to be back in the market as they have still to go a long way to cover their annual consumption demand.

In prevailing conditions when prices continue to rise, spinners generally curtail their daily offtake and withdrew to the sidelines until sanity returns to the market, the sources said.

Floor brokers said continued fall in the arrivals of phutti worried spinners about the size of the crop and an expected future pressure on supplies.

The latest arrival figures released by the Pakistan Cotton Ginners Association (PCGA) for the fortnight ended Nov 15, showing 14 per cent decline at 4.8m bales as compared to 5.5m bales during the same period last year did show an improvement as compared to the previous fortnight’s figure of 22 per cent but it points to a size of the crop, they added.

Some others attributed the decline in arrival figures to reports of holding back of phutti stocks by the growers to push prices further higher.

According to market sources, phutti prices have touched the high mark of Rs1,015 per 40 kg as some leading growers managed to tilt the price balance in their favour.

After soaring to 36 cents per lb, New York cotton futures also passed through a correction and were quoted lower by 0.27 and 0.13 cents per lb at 33.82 and 35.85 cents per lb for both the maturing December and the ruling March contracts respectively.

Local official spot rates were also raised by another Rs50 to Rs2,175 per maund but in the ready section asking prices were much higher.

There was a relative quiet on the ready section as spinners were not willing buyers at the rise and played safe. However, late on Tuesday night about 10,000 bales from half a dozen ginneries of central and southern Punjab ginneries changed hands between Rs2,200 and 2,225 per maund, details of which will be available on Thursday.