KARACHI, Feb 15: Active trading was witnessed on the cotton market on Wednesday as leading spinners indulged in big-lot business around the previous levels fearing further increase in prices.

The notable feature was that along with fine lots, some inferior ones were also offered for sale by ginners at a lower price of Rs2,500 per maund, which were readily lifted by the mills, dealers said.

“Ginners are inclined to dispose of inferior lots around the current higher levels and are holding on to the stocks of fine lint amid fears that their prices may fall after the premiums lots were sold,” they said.

Although spinners and mills need lower quality lint also for blending purposes, they are inclined to lift all the premium lots on the perception that the ginners will lower their asking prices for the inferior stuff, they hoped.

However, snap recovery staged by the New York cotton futures could change the current price outlook if it was sustained, some others said, adding that New York cotton futures at around 60 cent per lb rendered import uncompetitive.

The fact that spinner intake could touch the high mark of 15m bales during the current season owing to higher exports and active demand for textiles on the world markets.

“Spinners are eyeing half a million bales lying with the TCP and appear to a bit easy as they could make up the possible shortfall without resorting to imports,” market sources said.

Official spot rates were again held unchanged, although some of the deals were done below and above them depending on quality of lint in trade.

New York cotton futures on the other hand rose by 1.88 and 1.15 cents per lb at 57.04 and 57.75 cents for both the ruling March and forward May contracts, respectively, on reports of resumption of buying by China.

Ready business was active totalling 15,000 bales, the following being some of the notable deals: 7,000 bales, upper Sindh at Rs2,550 to Rs2,575; 967 bales, Nawabshah at Rs2,500; 2,000 bales, Bahawalpur at Rs2,575; 1,400 bales, Sadiqabad also at Rs2,575; 1,000 bales, Rahimyar Khan at Rs2,525 to Rs2,575; 200 bales, Mailsi at Rs2,575; and 200 bales, Vehari at Rs2,550.