KARACHI, Feb 17: Modest trading was witnessed on the cotton market on Tuesday as some of the spinners made selective covering purchases amid light trading followed by reports of lower than market expectations arrival figures of phutti into ginneries.

According to official arrival figures released by the Pakistan Cotton Ginners Association for the month ended Feb 15, the total was lower by about 0.2m bales at 9.386m bales as compared to previous season's comparable total of 9.574m bales.

Mill purchases were, however, higher at 7.326m bales as compared to the last year's figure and so were unsold stocks lying with the ginners at 1.654m bales as against the previous figure of 1.571m bales.

The lower arrival figures did not have an immediate bullish impact of the prevailing price but is expected to influence the future price outlook, market sources said.

Some of the lots which changed hands comprised of low-mic or inferior stuff needed by the mills and spinners for blending purchases with the polyester fibre to produce yarn for the export markets as well as for the local users, brokers said.

Bulk of low-mic lint from the central Sindh cotton belt was available between Rs2,750 and Rs2,875 per maund, while the ginners are not inclined to sell fine lots below Rs3,300.

Floor brokers said higher US crop figures at over 18m bales as compared to the previous season's 17.2m bales had halted the increase in New York cotton futures above 70 cents per lb followed by strong speculative selling. The local prices are still guided by the prediction of a short crop.

The ginners are of the opinion that the spinners have finally to opt for the local stuff and "we are in no hurry to indulge in hasty selling, they said. However, during the post-Eid holiday sessions, the spinners have significantly curtailed their daily offtake, but the ginners are holding on to their unsold positions amid hopes "they were the final winners," they added.

Earlier, both the ginners and spinners are awaiting the arrival figures of phutti for the month ended Feb 15, which are expected to be prelude for the resumption of normal trading on the cotton market.

Official spot rates were again held unchanged in the absence of normal business on the ready counter. Ready offtake was modest and totalled about 5,000 bales, the following being some of the notable deals: 200 and 500 bales, Shahpur Chakkar at Rs2,875 and Rs2,770, respectively; 1,000 bales, Rahimyar Khan at Rs3,300; and 200 bales, Uch Sharif at Rs3,150.