KARACHI,March 25: Lull prevailed in the cotton market on Wednesday in the absence of buyers.

Spinners withdrew to the sidelines as the ginners enhanced the asking prices. The buyers preferred to bide time until the sellers further reduced the prices realising that they stood on a weak wicket.

There is consensus among cotton circles that the cotton output this season is most likely to increase 10 million bales by a wide margin. This should take the wind out of the ginners’ sails whose hope of further surge in lint prices has dashed to the ground.

Counting too much on erratic and tricky world cotton prices may prove disastrous and therefore the ginners are soon expected to succumb to the spinners’ pressure to reduce the asking prices.

Although cotton arrival in Sindh ginneries has declined by 8 per cent as compared to the corresponding period last year, the market circles are optimistic that cotton production losses would be further trimmed when the final survey of the cotton crop would be over.

While last week, some active covering purchases by the mills were witnessed presumably due to reduced asking prices but the spinners soon became chary of making fresh commitments as the ginners raised the asking prices in view of the bullish tenor of New York cotton.

The spinners were not prepared to extend support to the market if prices did not match their export parity idea. The going is already not good on the export front.

Both demand and price for yarn are low while slapping of antidumping duty against bed linen has dealt a mortal blow to the country’s bedwear industry. In the situation, the spinners have decided to lie low waiting for better times.

On Wednesday, the ready business was almost nil. Official spot price however remained unchanged at Rs2,975.

The News International, Pakistan