KARACHI, June 30: Cotton market on Saturday consolidated the overnight gains, but physical business remained dull as spinners were not inclined to chase prices further higher.

According to brokers some of the spinners offered to buy stray lots of fine quality around Rs2,800 per maund but ginners were not in an obliging mood.

The price situation has further accentuated on higher world prices followed by reports of speculative covering purchases by the major consumers and reported pressure on New York cotton futures, floor brokers said.

The New York cotton futures for the ruling October settlement swelled well above the benchmark of 60-cent per lb at 61.50 cents and were expected to set new records as supplies might not match the rising world demand, they added.

After having purchased some fine lots at Rs2,900 per maund, spinners and mills took a breather hoping some easing in prices but ginners were out to cash in on the existing supply and demand position, market sources said.

“I don’t think lint prices could be contained within the export parity level of spinners in the coming weeks,” said a ginner, adding “continued rain in the lower Sindh cotton belt and bullish world price outlook is expected to push prices further higher also”.

Meanwhile, reports of fresh rain in the lower Sindh cotton belt will further delay the picking operations of phutti and in turn ginning operations. The arrivals of phutti are suspended since last week.

Ginners, who signed forward deals with the spinners and mills around Rs2,525 per maund for delivery in middle of August, are worried on the issue and may ask spinners to extend the delivery date.

New York cotton futures were quoted sharply higher by 1.50 and 1.60 cents per lb at 58.50 and 61.50 cents for both the maturing July and new crop October contracts respectively.

Official spot rates on the other hand were quoted unchanged after last two sessions’ persistent rise at Rs2,650 per maund.