KARACHI, Oct 19: Cotton market on Friday maintained the firm trend as pent-up mill demand figured prominently at the current levels amid predictions of an imminent price flare-up.

About 20,000 bales changed hands during the session as spinners and mills lifted all the lots below or around Rs2,900 per maund, depending on quality, dealers said.

The next couple of weeks could be very crucial for the cotton trade as global demand outstrips the supplies owing to short crop in some of the leading producers, some analysts said.

They said steep rise in New York cotton futures did worry spinners amid fears that local prices may rise in sympathy during the coming sessions and that was one reason behind the stepped up mill buying.

New York cotton futures soared by 1.59 and 1.49 cents per lb for both the ruling December and forward March contracts on Thursday at 65.15 and 69.02 cents respectively.

“The increase in New York cotton futures is a double edged weapon,” said a leading broker, adding “on the one hand it makes import expensive and causes sympathetic rise in local prices on the other”.

That is perhaps why spinners and mills are not inclined to take a chance as it will add to their overheads on the input account, they said.

Official spot rates did not show any change and were firmly held at the last levels.

The following notable deals in ready business were reported:SINDH TYPE: 1,000 bales, Sanghar and 800 bales, Mirpurkhas at Rs2,850 to Rs2,875, 1,000 bales, Khairpur at Rs2,875 to Rs2,900, 600 bales, Khipro at Rs2,850 to Rs2,860, 800 bales and Shahpur Chakkar at Rs2,850 to Rs2,890 and 200 bales, each Hyderabad and Sakrand at Rs2,850.

PUNJAB VARIETY: 2,000 bales, Kabirwala, 600 bales, Saleh Pat at Rs2,900, 1,000 bales, Khanewal at Rs2,900 to Rs2,925, 1,000 bales, D.G. Khan and Muridwala at Rs2,875 to Rs2,900, 1,000 bales each, Khanpur and Rahimyar Khan at Rs2,875 to Rs2,900, 400 bales, 600 bales, Bahawalnagar and Burewala at Rs2,875, 600 bales, Khanewal at Rs2,875 and 600 bales, D.G. Khan at Rs2,850 to Rs2,875.