KARACHI, May 22: Cotton prices on Wednesday showed an erratic trend as spinners continued to play hide-and-seek game with the ginners and kept them at their toes throughout the session in an attempt to weaken their holding capacity.

But a section of leading ginners refused to bow down to spinners overtures and finally managed to sell in part some of the fine lots at much higher rates including some K-68 sawgin lots from the upper Sindh ginneries between Rs1,540 and Rs1,675 per maund, much higher than the official spot rates.

But ginners are worried over the lowering of procurement prices by the Trading Corporation of Pakistan (TCP) apparently in line with the international rates, which in their opinion is working against the bargain-capacity with the spinner.

The TCP announced that it has purchased 1,360 bales, having a staple length of 1-1/32 inches at Rs1,575 per maund, in line with the revised spot rates of the Karachi Cotton Association in standard export packing.

Market sources said previously the TCP’s rates were much higher than the prevailing official rates and the difference between the two rates provided them a needed leverage to opt for the best.

“Price of lint could fall further because of TCP’s market related moves in the line with international market outlook”, they said adding “the fears of war and falling demand for textiles could further aggravate the situation”.

Reports from the textile export front are also not very encouraging as foreign buyers are watching developments on the war front and foreseeing shipment problems have curtailed the size of their nearby orders, they added.

This was one of the reasons behind the current sluggish mill demand as spinners are also making guarded buying amid fears of war in the backdrop of tense border situation.

Official spot rates did not show any change but most of the deal reported in the ready section were slightly above them depending on the quality in trade.

New York cotton futures on the other reversed the current downturn as speculative buyers covered positions fearing pressure on supplies from Pakistan owing to war-like situation and cross-border shelling.

Ready offtake was modest and totalled 7,000 bales, the following being some of the notable deals: 5,000 bales, K-68 Sawgin, Khanpur Mehar at Rs1,540, 600 bales, Sarhad at Rs1,675, 400 bales, Gambat at Rs1,475, 200 bales, Kandero at Rs1,550 and 300 bales, Sadiqabad at Rs1,550.