KARACHI, Nov 15: Trading activity on the cotton market on Saturday was relatively slow as ginners raised their asking prices amid hopes that the Trading Corporation of Pakistan would resume procurement operations shortly.

According to Karachi Brokers Forum Chairman Naseem Usman the ginners have unsold stock of 2m bales and leading among them are holding onto their positions to sell their lint to the TCP at Rs3,200 per maund.

The holding back of stocks by the ginners pushed prices further higher as bulk of the business was transacted between Rs3,000 to Rs3,100 per maund as compared to previous Rs2,800, he added.

Owing to price war between the ginners and the spinners, the daily turnover shrank to about 12,000 bales as compared to average daily tally of 30,000 shares for the last couple of weeks, market sources said.

They said the market was awaiting the release of PCGA figures of phutti arrivals for the fortnight ended Nov 15 which could have negative bearing on the prevailing rates if arrivals maintain their upward trend as they had been since the start of the season.

They said spinners and mills could not go beyond their export parity levels because of prevailing recession in western market amid lower prices being offered by their foreign buyers.

That was perhaps why unlike the previous sessions, instances of big-lot business were wanting as spinners were not inclined to go beyond their export parity levels.

Meanwhile, reports reaching from the cotton belt indicate that phutti rates remained unchanged between Rs1,450 to Rs1,550 per 40 kg depending on the quality and growers are said to be active sellers at these rates.

Official spot rates were, therefore, firmly held at the last close of Rs2,950 per maund, although in the ready section most of the deals were done at much higher rates.

New York cotton futures on the other hand turned mixed and the maturing December contract fell by 0.27 cents at 41.03 cents per lb and the forward March rose by 0.65 cents at 42.51 cents per lb.

Ready business was on the lower side totalling about 12,000 bales as under:

SINDH TYPE: 1,000 bales, Sanghar at Rs2,800 to Rs2,850, 1,000 bales, Shahdadpur at Rs2,850 to Rs2,900, 400 bales, Mirpurkhas at Rs2,900, 400 bales, each Dadu and Hala at Rs2,925 and 600 bales, upper Sindh at Rs3,100.

PUNJAB VARIETY: 200 bales, each Tandilawala, Jampur, at Rs3,000, 400 bales, Mianwali at rs3,000 to Rs3,050, 400 bales, Jalalpur, 200 bales, each Liaquatpur, D.G. Khan, Hasilpur and 400 each bales, Mian Channur and Gojara at Rs3,050, 800 bales, Rajanpur at Rs3,075, 400 bales, Chistian at Rs2,975, 600 and 200 bales, Uch Sharif and Bahawalpur at Rs3,100.