KARACHI, June 13: The activity on the cotton market on Monday resumed on an insipid note as leading buyers were conspicuous by their absence apparently watching fresh developments on the global trading centres.

Analysts said leading spinners and mills appeared to be busy in year-end closing and in the process of adjusting their overdraft limits after having cleared outstanding dues.

The chief worry of both the ginners and the spinners was to get their bank overdraft limit renewed for the new cotton season and
that was well-reflected by their absence in the ready market, they said.

Stray lots, however, did change hand at rates based on quality of the lot in trade as was reflected by a modest deal of 400 bales
from a Khanpur ginnery at Rs9,000 per maund.

But as a whole the mill off-take was on the lower side as most of the ginners had already sold their stocks and are awaiting the arrival of new crop though on a modest scale.

According to market sources some of the ginneries in the lower Sindh are expected to resume new year operations on a modest scale from June 15, as phutti arrivals have started and stray lots of the new crop will be on sale by the end of the current month
or early next month.

The rate of new crop phutti (seedcotton), is being quoted at Rs3,550 to Rs3,600 per 40 kg but dealers said there could be a progressive increase despite the fact that supply position will improve after the Punjab ginners join the race, market sources said.

There was no change in the official spot rates at Rs8,500 per maund for an average quality lint.

The following are some of the deals reported by the Karachi Brokers’ Forum: 400 bales, Khairpur at Rs8,500, 467 bales, Mirpurkhas at Rs7,950 and 100 bales, Haroonabad at Rs8,600.