KARACHI, May 7: Trading on the cotton market on Monday resumed on a cautious note as some of the local mills sought modest supplies at the current levels but ginners were not in an obliging mood.

The standoff on the selling prices since the release of official arrival figures by the Pakistan Cotton Ginners Association (PCGA) of 12.411m bales and unsold stock of 0.408m bales as both the buyers and the sellers have taken a rigid stand on the respective positions, floor brokers said.

Some of the local mills and spinners are enquiring through local brokers fresh supplies at specified rates but ginners appear to be entertaining higher price ideas, they said.

As a result, for the last couple of sessions ready off-take was a major casualty in the price war between the ginners and the spinners, although unconfirmed reports indicate that some lots did change hands but details were not sent to the Karachi Cotton Association.

“While ginners appear to be least worried over the modest unsold stocks, spinners and mills are probing the foreign markets for fresh supplies below the 50 cents per lb mark,” cotton analysts said.

Although market sources indicate that some of the leading mills have made forward deals for another 0.250m bales for late June and early July shipments from various sources but official details of the figures are not available.

However, ginners are sitting pretty comfortable on their inventories, mostly of fine lots and are a little worried over the absence of buyers.

“The unsold stock of 0.408m bales are equivalent to about two weeks mill consumption needs and cause no worry to us,” says a leading ginner

adding: “We sell it any time.”

It was in this background that official spot rates were firmly held at the last level of Rs2,700 per maund.

Ready off-take remained at low ebb, although some of the brokers say about 1,000 lots did change hands.