KARACHI, Sept 13: Trading on the cotton market on Monday resumed on easy note as ginners were in no mood to hold on to their unsold position in an uncertain price outlook. Arrivals of phutti into the ginneries are said to be on the higher side after picking operations were resumed in selected areas of upper Sindh and Punjab cotton belt.

Although, the current phutti rates below Rs1,000 per 40 kg are well below the grower perceptions, no one among them is inclined to hold on to stocks amid market talk of a bumper crop and fears of further decline in prices.

Active daily mill off-take reflects the current price level are in line with their export parity levels and continued to cover their forward sales of cotton yarn for the next quarter ending November 30, brokers said.

Most of the deals in the central and lower Sindh lint were done at Rs2,150 on the lower side and Rs2,300 per maund on the higher side, but unlike the previous sessions, Punjab lint fetched a uniform price of Rs2,300.

Market sources said the increase in prices of the Punjab lint shows that its quality, notably micronaire has significantly improved with the maturity of bolls.

There is no official report from the Trading Corporation of Pakistan whether or not it has resumed procurement operations to forestall further decline in prices, they said. It has already opened procurement centres both in Sindh and Punjab to support price of phutti if it falls below the official rate of Rs925 per 40 kg.

"Unsure of post-TCP entry market behaviour, spinners and mills are in no mood to take even the calculated risk and are lifting all the lots offered by the ginners irrespective of the quality considerations as is reflected by a difference of Rs150 per maund between the lowest and the highest prices at which daily transactions are being done", says a leading broker.

Official spot rates were quoted at Rs2,250 per maund, but some of the deals in fine types were finalized above this rate. Ready off-take was active as till late in the evening about 10,000 bales, changed hands, the following being some of the notable deals:

SINDH TYPE: 1,000 bales, Mirpurkhas at Rs2,200, 1,000 bales, Shadadpur at Rs2,230 to Rs2,275, 1,000 bales, Tando Adam at Rs2,225 to Rs2,250, 1,000 bales, Sanghar also at this rate, 1,000 bales, Nawabshah at Rs2,250 and 200 bales, Kot Ghulam Muhammad at Rs2,200. Modest business was also reported at Rs2,275 to Rs2,300 per maund in the Punjab variety, but details were not immediately available.