KARACHI, July 8: Cotton market on Monday consolidated weekend gains as ginners and spinners remained locked in a price war but it appears to be a no-win situation for the both.

And in the process, the chief casualty was the physical business as price ideas of buyers and sellers failed to find a meeting ground till late in the evening, although there were buyers, who were giving around Rs.2,000 per maund for the fine lots both from the upper Sindh and the southern Punjab ginneries.

Floor brokers said ginners holding large unsold stocks are reluctant to sell at the prevailing prices followed by reports that the new crop from the Sindh ginneries may be delayed until the first week of next month owing to irrigation problems and the consequent delay in the picking operations.

“Phutti has already started reaching the lower Sindh ginneries, but the quantity is too small to resume ginning operations at this stage,” says a ginner. “Picking operations are still to get normal impetus even at this late stage owing partly to extremely hot weather conditions.”

Although phutti prices are being quoted higher by Rs.50 above the officially fixed price of Rs.800 per 40 kg despite the absence of central Punjab ginners, the activity in the lower Sindh cotton belt is relatively slow as local ginners are not inclined to further add to the price flare-up.

The local Sindh phutti market has been heating up after the entry of the central Punjab ginners, pushing the rates as higher as Rs.1,000 per 40 kg during the last couple of years. But incidentally, they are not buyers of phutti so far during the current season.

However, lower Sindh ginners say they are planning to resume processing operations some time during the second week of the next month as some of them have already signed forward contracts around Rs.2,200 per maund for delivery in the first week of August.

Meanwhile, reports reaching here from the entire cotton belt indicate that the new crop is progressing well in the Central and upper Sindh cotton belt and in the Punjab.

There are stray reports of pest attack in some areas but the situation is well under control owing to timely spraying operations.

Official spot rates were firmly held at the last levels as ginners did not lower their prices in physical trading.

Ready offtake remained slow owing to higher asking prices but about 1,500 bales of inferior types changed hands between Rs.1,775 to 1,800 per maund depending on quality of lint in trade.