KARACHI, May 19: Cotton market on Saturday resisted fresh decline as ginners firmly held on to their unsold positions and did not accept lower offerings by the spinners. “There is no confusion among the ginners about fears of fresh decline in prices,” said a ginner, adding “the size of the unsold stock is within our financial limits and in no way could cause pressure on our liquidity”.

According to unofficial sources ginners may not have more than 0.250m bales which they could sell in a day to a single buyer.

“The bank overdraft deadline of June 30 is still away and we intend to dispose of our unsold stock of mostly fine lots at our own price,” another ginner said.

Market sources said the recent increase in the New York cotton futures have provided the much needed boost to the local ginners on the perception that there could be sympathetic rise in local prices in the coming sessions.

Moreover, spinners and mills have to decide whether to go for an expensive foreign or the local stuff ready for prompt delivery and at a competitive rate.

The prevailing standoff is expected to continue until the new crop starts arriving from the lower Sindh cotton belt but it appears to be a no-win situation for any of the contenders,” ginners said.

New York cotton futures posted a fresh modest rise of 0.17 and 0.30 cents at 49.76 and 52.70 cents per lb for both the ruling July and the new crop October contracts respectively.

Local official spot rates on the other hand did not show any change and were firmly held at the overnight close of Rs2,650.

Owing to higher asking prices being quoted by the ginners for fine lots, ready offtake was on the lower side as only 800 bales from a Khanpur ginnery changed hands at Rs2,740 per maund.