KARACHI, April 25: The trading in the new crop resumed on the cotton market on Wednesday as a local spinner finalised a maiden forward deal with a lower Sindh ginner.

According to cotton analyst Naseem Usman delivery of 200 bales from a Sultanabad ginnery is stipulated on Aug 15, but hopes some more forward deals are in the pipeline for early delivery possibly by the end of July.

He said the sowing of the new crop in the major areas of lower Sindh cotton belt had already been completed, while in some other areas was expected to be completed by the end of the current month.

Unlike the previous season, the rate at which forward deal was made was much higher and reflected that the lint may remain expensive in the new season also, he added.

During the last cropping season some of the forward deals were finalised around Rs2,400 and below it for late July delivery, market source said.

Indications are that the negative fallout of the current short crop will dominate the trading in the new crop as uncertainty “whether or not the higher target would be achieved” will continue to haunt spinners and mills,” they said.

Meanwhile, standoff prevailed on the current crop trading as both the ginners and the spinners rigidly held on to their positions, the former being in a commanding position owing to modest unsold stocks held by them.

Official spot rates were, therefore, again held unchanged at the last level of Rs2,725 per maund but in the ready section fine lint was quoted at much higher rates.

New York cotton futures on the other hand fell further by 0.42 and 0.79 cents per lb at 48.68 and 50.72 for both the ruling May and the distant July contracts respectively.

Ready offtake was light as only one deal of 1,000 bales, from a Khanpur ginnery was reported at Rs2,800 per maund.