KARACHI, Nov 7: The post-Eid session of the cotton market was cheerless as brokers and ginners based in Karachi remained busy in exchanging Eid greetings rather than indulging in fresh buying.

Reports from the southern Punjab cotton belt, where bulk of the business is daily transacted, also indicated that physical business there remained at a low ebb but hoped that the normal trading is expected to be resumed by Tuesday, brokers said.

However, prices remained steady despite a TCP tender for another 50,000 bales on Nov 10 on the perception that the cotton market is expected to heat up in sympathy with the world market, they said.

“There are reports that major cotton producers, barring India, are harvesting lower crops, which in turn could push prices further higher on global basis,” they said. “The last week’s increase in local prices was indicative of this fact.”

Although growers are not inclined to hold long positions of phutti and are willing to dispose them of around an average rate of Rs1,000 per 40 kg, leading among them are holding in part hoping further increase in prices.

But for the time being official spot rates at Rs2,350 are considered stable and any future increase will be guided by arrival figures of phutti for the fortnight ending Nov 15, dealers said.

Meanwhile, reports from the cotton export front were not that encouraging as private sector exporters are not inclined to make bigger commitments in view of the highly volatile world market and wild price fluctuations.

That is perhaps why their total export commitments up to Oct 23 are meagre at 56,176 bales, against which physical shipments of 19,329 bales have been made so far.

Official spot rates were, therefore, firmly held at the last level of Rs2.350, although some of the deals were done well above them for local delivery.

About 1,500 bales were purchased by local spinners at around Rs2,450 per maund for prompt delivery to cover the supply gaps caused by Eid holidays, dealers said.