KARACHI, March 8: Physical activity on the cotton market on Saturday remained at low ebb as spinners were conspicuous by their absence after having made panic buying during the last couple of sessions.

The steep decline of eight cents per lb in the New York futures during the last two sessions and unprecedented increase of 16 cents, which sent the forward July contract to a record level of well over 91 cents per lb, kept spinners out of the arena hoping a sympathetic fall in local prices, said a leading cotton broker.

Some of the leading ginners, who hold larger chunk of unsold stocks of 1.4m bales, lowered their asking prices by Rs50 to Rs100 per maund in line with the global prices but failed to woo buyers, he said.

As a result, there was no ready off-take as buyers and sellers were poles apart as far as the competitive prices are concerned.

“If the New York cotton futures fall as did they rise daily by limit-gains during the next week, local textile industry will be the chief beneficiary,” said a spinner.

He said indications are that prices will fall further on the New York Cotton Exchange as speculative forces seem to be on the backtrack and may not be in a position to sustain the current price flare-up, he said.

However, there appears to be no end to the impasse on the import front after India’s refusal to honour their export commitments. Unconfirmed reports said some of the leading importers are seeking the help of Indian high commissioner to settle the issue under the normal business ethics, market sources said.

The next week’s trading could be very crucial both for the spinners and the ginners as it will set the future price trend based on global prices, they added.

Meanwhile, reports originating from the end-product users say cotton yarn prices have also risen sharply higher in sympathy with the increase in lint, creating some problems for them on the textile export front.

New York cotton futures suffered a limit-fall of 4 cents per lb for the second consecutive session at 81.28 and 83.11 cents for both the ruling May and the distant July contracts, respectively.

Local official spot rates on the other hand were again firmly held at the overnight level of Rs3,350 per maund.