KARACHI, July 6: Cotton market on Friday maintained a bullish outlook as supply concerns continued to worry spinners and mills amid fears of a fresh price flare-up. What seems to have sent shock waves among the spinners and the mills was a forward deal in lower Sindh lint for delivery in the first week of August at Rs2,800 per maund, brokers said.

Although the rate is still lower as compared to similar deals which were finalised at Rs3,030 per maund in the central Punjab cotton belt owing to quality differentials, it indicates that the recent rains have caused some damage to new crop in Sindh, they said.

Prior to the rain, most of the forward deals in the lower Sindh variety were being finalised around Rs2,525 per maund, they added.

“The current fiscal is going to be more difficult for the textile industry as higher input cost may render textiles’ exports uncompetitive on the world markets,” fears a leading spinner.

He said the Rs20bn package for the sector may lose its relevancy in the changing supply and demand scenario.

The new crop condition in the Punjab belt is satisfactory, but it may not be possible to make up the damage caused to Sindh crop owing to flash floods after heavy downpour, market sources said.

New York cotton futures were also quoted higher by 0.25 and 0.41 cents per lb for both the ruling October and newcomer December settlements at 62.00 and 63.89 cents respectively. The matured July was rung off the board.

Local official spot rates were also quoted higher by Rs25 per maund at Rs2,675. On the ready counter, 600 bales of new crop were sold at Rs2,800 per maund for delivery between Aug 1 and 15.