KARACHI, Oct 8: After having passed through lean sessions for the last couple of sessions, cotton market on Monday showed firm trend as spinners covered positions at the prevailing lower prices.

“We don’t call it war-related covering purchases by the mills and spinners”, one broker says, adding “but certainly spinners may have fears about the future supplies if the war in Afghanistan drags”.

Some of the deals in the ready section were done as higher as Rs.1,600 sharply higher from the previous week’s lows of Rs.1,425.00. However, low turnover indicates ginners willingness to sell in a big way in a rising market.

There is perception and shared by most of the spinners unlike the previous season, it may not be possible to import lint from the other countries because of shipment problems and foreign sellers reluctance to honour their commitments because of war in Afghanistan, some dealers say.

Big spinners groups were back in the market and provided the much-needed lead to the smaller one to keep a manageable stock position as the fallout of the US attacks on Afghanistan could have far-reaching negative impact on the supply lines of raw materials including cotton.

Those who could afford to have long positions at the current attractively lower levels were not inclined to missing the prevailing rates but those who have liquidity problems may not follow them but will certainly try to have stocks for their nearby requirements.

Floor brokers said the revival of mill demand apart, the strong presence of the Trading Corporation of Pakistan in the cotton trade as a second buyer also aided the return of a bull market.

The next couple of sessions will show how the market reacts to the events in Afghanistan irrespective of supply and demand factors, they added.

Meanwhile, exporters registered export deals for 578 bales sold to Sri Lanka, with the Export Promotion Bureau on Oct 5, which pushed the total for sales during the current season to 7,523 bales including 5,315 bales of the old crop.

Official spot rates were marked up by Rs.50.00 per maund in line with the increase in physical trading.

Ready offtake was modest totalling 3,000 bales, all from the Sindh ginneries, the following being some of the notable deals: 400 bales of Tando Adam at Rs.1,550.00, 600 bales of Hyderabad at 1,550.00, 200 bales at 1,540.00, 500 bales of Nawabshah at 1,600.00, 200 bales of Shahdadpur at 1,550.00, 200 bales of Oderolal at 1,600.00 and 200 bales of Mirpurkhas at 1,550.00.