KARACHI, Dec 6: Trading on the cotton market on Monday resumed on a dull note as spinners and ginners remained locked in price war but the latter appeared to be in no mood to be outwitted by larger than expected arrivals of phutti.

Stray lots did change hands in bulk as some of the spinners who were still short of their annual consumption needs were not inclined to stay away as they purchased fine lots as higher as Rs1,900 per maund. Inferior varieties were, however, traded between Rs1,825-1,850 but reports from the central cotton belt were lacking as ginners there held on to their unsold positions.

"The battle of wits between the ginners and the spinners is expected to remain at high pitch as someone has advised the former to hold on to their positions as they could be the final winners to get fair price", some brokers said.

Shrinking ready off-take points to this phenomenon at least for the near-term but much would depend on the holding capacity of the ginners, leading among them have already absorbed the negative impact of larger than market expectation phutti arrivals for the fortnight ended Nov 30, at well over 10m bales.

Analysts said ginners seemed to have fair idea of the mill consumption in the backdrop of changing world textile scenario. Local spinners and mills were said to be already confirmed orders for the next quarter ending March 31, and may remain active buyers to cover their forward positions.

"Mill consumption figure may touch the high mark of 13m bales during the current year owing to a massive expansion and modernization programme carried by them", they said adding "leading ginners have a fair idea of their future demand and are holding on to their positions for a better price at the end of the season".

They said current volatile performance of the New York cotton futures did not influence the local market as it is mostly being guided by the demand and supply factors.

However, one thing now appears certain that there is no possibility of a market crash as was widely speculated after the latest phutti arrival figures thanks to the strong presence of the TCP as a second buyer.

According to latest purchase figures released by the TCP, it has bought 1.554m bales, 1.089m bales from the Punjab ginners and 0.459m bales from the Sindh ginneries, which in turn provide another option to the ginners to get a better price.

Official spot rates were, therefore, firmly held at the last close, although some of the deals were finalized well above them depending on quality. The following being some notable deals:

SINDH VARIETY: 3,000 bales, K-68 Sawgin Gothki at Rs1,900.