KARACHI, Dec 31: Cotton market on Tuesday maintained a bullish outlook as ginners held on to their stocks apparently in a bid to raise prices further higher.

Ready offtake, therefore, fell to a modest proportions as spinners were also reluctant to bid at the higher rates owing to their export parity levels for yarn and cloth.

“Both the ginners and spinners seem to have taken positions to outwit each other on the price front”, brokers say “but it appears to be a no-win situation as the role of the both is complimentary to each other”.

But market sources attributed the current slowdown in ready business to year-end considerations as most of the leading spinners were not inclined to inflate their inventories for year just ended.

Spinners are expected to open the new year account with higher buying orders as they have still to go a long way to cover their forward positions against foreign sales of cotton yarn, they added.

“The recent lowering of the crop estimate could work both ways of the market as the speculative forces will try to tilt the balance in their favour until the final production figure is available”, they said.

However, ginners are least worried over the developing situation on the crop front as most of them had judiciously maintained a balance between the prices of phutti and the lint.

Unlike, the previous seasons, they are expected to be the beneficiary of the developing situation and spinners may remain on the receiving end as the imports are too expensive.

Owing to higher world prices, some of the importers are seeking fresh supplies from the local exporters. According to official figures, private sector exporters have sold another 4,428 bales from Dec 24 to 28, to Indonesians and Bangladesh importers. Total foreign sales rose to 57,302 bales up to Dec 28, 2002.

New York cotton futures showed divergent trend. While the ruling March contract fell by 0.23 cents, the distant May rose by 0.12 cents at 51.57 and 55.10 cents per lb respectively.

Local official spot rates were marked up by Rs25 per maund owing to an identical increase in the ready section.

Ready offtake was light totalling about 10,000 bales as under:

SINDH VARIETY: 390 bales, Qazi Ahmed at Rs2.125, 800 bales, Nawabshah at Rs2,140, 500 bales, Khador at Rs2,125, 400 bales, 800 bales, 400 bales and 400 bales, Dharki, Gothki, Khanpur Mehar and Mirpur Mathelo at Rs2,175.