KARACHI, June 22: Cotton market on Friday showed firm trend but physical business remained at low ebb as southern Punjab markets were closed owing to weekly holiday. In the backdrop of heating up of the market after couple of weeks slow trading, ginners holding stock of fine lots were a bit happy on the snap change in the trading pattern, floor brokers said.

“Many may not have a faint idea of the season’s highest rate of Rs2,800 per maund at which about 2,000 bales were sold a day earlier, but now they seem to be holding the price line,” they added.

Indications are that the next couple of weeks could prove very crucial for the textile sector as far as the supply factors are concerned, market sources said, adding “spinners and mills may have to strike a balance between the lint price and their export parity levels”.

“The steep rise of New York cotton futures to 60-cent mark is expected to change the entire global price outlook,” said a leading spinner, adding “those who are short of their annual consumption stocks may not remain competitive on the export markets”.

Local spinners and mills are currently haunting the foreign supply lines to supplement their positions and may have to go for expensive foreign lint including from India, he said.

However, some ginners from the lower Sindh cotton belt said that the old crop could easily meet a good part of current demand before the new crop from the Punjab cotton belt is available.

The new crop from the lower Sindh cotton belt is being sold on forward delivery basis around Rs2,525 per maund which is cheaper as compared to foreign lint, they added.

Official spot rates were again firmly held at the overnight level of Rs2,600 per maund in the absence of ready business. No broker reported any deals till late in the evening.

New York cotton futures on the other hand were quoted further higher by 0.75 and 0.30 cents per lb for both the maturing July contract and the new crop October settlement at 56.50 and 60.00 cents respectively.