KARACHI, July 24: Physical activity on the cotton market on Thursday remained relatively slow as spinners were not inclined to bid at the higher asking prices of ginners because of their export parity compulsions.

Stray lots in new crop changed hands at the seasonal highest level of Rs2,425 per maund as some of the needy spinners were in no mood to await fall in prices, but leading among them holding comfortable stock position were very selective and stayed on the sidelines.

The increase of Rs25 per maund in the selling prices of new crop from the Sindh ginneries reflects an improvement in the micronaire of the stuff, which had dropped to lowest proportions a couple of weeks earlier, dealers said.

But the official rate committee has lowered the current crop prices from the overnight Rs2,450 to Rs2,420, a downward revision of Rs30 per maund apparently for quality reasons, they said.

According to market sources, most of the ginners holding stray lots of the current crop have sold them on an average rate of Rs2,500 per maund during the last couple of weeks and leftover stock may be of inferior quality.

Although monthly official figures of unsold stocks are not available from the Pakistan Cotton Ginners Association, the market sources claim they are not more than a couple of thousands, that too of inferior quality.

The pressure is, therefore, on the new crop from the Sindh ginneries and the consequent increase in prices.

“The latest spell of monsoon rain has further accentuated the supply position of new crop lint, as both the picking operations of phutti and ginning operations have to be temporarily suspended,” brokers said.

However, they expect the resumption of normal trading during the next week provided there is no fresh rain. Both the picking and ginning operations are expected to resume possibly by early next week.

While the local market is heating up because of short supply, New York cotton futures on the other hand came in for renewed speculative selling for the fourth session in a row.

Both the ruling October and the distant December settlements were marked further down by 0.31 and 0.40 cents per lb at 57.60 and 59.27 cents, respectively.

Ready business remained light as till late in the evening about 500 bales changed hands, including 200 bales of new crop sold by an exporter to a spinner at Rs2,475. Another 100 bales from a Mirpurkhas ginnery were sold at Rs2,425.