KARACHI, Aug 4: Cotton market on Saturday emitted bullish sparks as ginners raised their asking price by Rs25 per maund and analysts said some of the leading spinners appear to be in an obliging mood.

They said a section of leading spinners and mills, who had made forward export deals at much higher rates in the backdrop of current rise in New York futures, are in the process of covering their positions, leading to price flare-up.

“We are purchasing lint well above our export parity levels only to honour our forward sales to protect our reputation as Pakistani exporters,” said a leading spinner “all the consignments are being sent at a loss owing to higher local lint prices.”

As a result, some of the deals in fine types from a central Sindh were finalised at Rs3,225, the season’s highest rate so far, which signals that hard days are ahead for the spinners and mills, having negative impact on the export of textiles.The notable feature was that despite varietal difference, Sindh type was sold at a premium as compared to its Punjab counterpart, which normally is sold at a premium of about Rs100 per maund.

Floor brokers said the difference in selling prices reflects that the Sindh type is better in quality as compared to central Punjab as spinners have their own arrangements for quality checks before finalising deals.

They said the central Punjab lint may have been slightly lower mix because of late rain and pest attack and that is why it is being sold at lower rates.

After last couple of sessions, relative calm, physical activity was on the higher side as about 4,000 bales, both from the Sindh and the Punjab cotton belts changed hands.

There was, however, no change in the official spot rates, which were held unchanged at Rs3,000 per maund, although most of the deals were done well above them.

New York cotton futures on other hand posted fresh rise of 0.25 and 0.31 cents at 62.85 and 64.89 cents per lb for both the ruling October and the distant December settlements, respectively.

The following are some of the notable deals, which were gone through on Saturday:

SINDH TYPE: 400 bales, Tando Adam at Rs3,225, 100 bales each, Mirpurkhas and Sanghar and 200 bales, Shahdadpur at Rs3,200.