KARACHI, March 17: Cotton market resumed trading on Monday on a firm note as ginners were not inclined to lower their asking prices despite reports that some leading spinners have purchased half a million bales from the world markets.

Leading spinners having an eye on the Iraq situation were, however, not inclined to take even a technical breather and indulged in a big-lot business, lifting all the lots including a single deal of about 7,000 bales, at Rs2,600.

The crop is certainly below the annual consumption needs of the textile sector and spinners may have to import about 0.3m bales to make up the local crop shortfall but the figure of half a million appears to be on the higher side, brokers said.

There is no official word either from the official or the Aptma but rumours circulating on the market suggest that some of the leading spinners had made forward deals around 52 cents per lb early this year fearing a possible crop shortfall, they added.

“But the New York cotton futures now ruling around 60 cent per lb level, the import of lint may be a bit expensive,” says a spinner. “However, the local supply position is closely watched before opting for further imports.”

The arrival figures of phutti for the fortnight ended March 15, will give a fair idea of the size of the total crop and that could form the basis of further imports of lint from the foreign sources.

Owing to fears of Gulf war, no spinner would like to enter into forward deals at this stage as shipment schedules may be disturbed if US attacks Iraq.

However, prices of lint will rise from the current levels as spinners and mills will try to grab the floating stock irrespective of the higher demand from the ginners, spinners fear.

The next couple of sessions appear crucial for the direction of the market as it is too early to assess the impact of Iraq war on the lint prices here, brokers said.

On the export front, the private sector exporters have sold another 2,783 bales to Bangladesh and Indonesia, the total foreign sales so far (up to March 12) being 0.241m bales, out of which 0.189m bales have been physically shipped.

Official spot rates were firmly held at the weekend levels, although in the ready section most of the deals are being finalized above them.

Ready offtake was light as till late in the evening about 15,000 bales changed hands as under: 5,200 bales, Rahimyar Khan at Rs2,600, 6,800 bales, Bahawalpur also at the same rate and 2,400 bales, Haroonabad at Rs2,550.