KARACHI, Dec 12: The cotton market on Tuesday maintained a bullish outlook as spinners resumed their normal covering operations after Monday’s pause caused by technical factors.

About 40,000 bales, mostly fine lots, from the southern Punjab and upper Sindh cotton belts were target of spinners as leading among them were out to corner the entire unsold stock irrespective to the higher asking prices.

Most of the deals were finalised between Rs2,600-2,625 per maund but some of the leading ginners were not that enthusiastic sellers on the perception of fresh rise in prices, brokers said.

“Spinner strategy to operate slowly under a reported cartel decision to keep prices within their export parity levels seems to be fading under the weight of market talk of lower crop,” they said, adding “ginners and growers appear to be on the winning side”.

The sharp price flare-up in New York cotton futures after weeks of sluggishness was a supporting factor fuelling price hike, says a leading cotton analyst, adding the next couple of sessions could be very crucial for the future local market trend.

On revival of foreign demand, New York cotton futures on Tuesday were quoted higher by 1.56 and 1.39 cents per lb at 54.29 and 55.50 cents for both the ruling March and the forward May contracts respectively.

Market sources said any further increase in New York futures would have positive impact on the local prices in the weeks to come as spinners will opt for the local stuff owing to expensive imports.

As a result, official spot rates were also upped by Rs25 to new seasonal high at Rs2,550 per maund but the physical business was being transacted above them.

Ready off-take was on the higher side totalling about 40,000 bales, the following being some of the notable deals:

SINDH TYPEM: 1,000 bales, upper Sindh at Rs2,625, 500 bales each, Shahdadpur and Dadu at Rs2,500 and 600 bales, Khipro at Rs2,480.