KARACHI, May 6: Cotton market maintained a firm trend on Tuesday as ginners held on to their unsold positions and did not oblige spinner overtures aiming at lower prices.

The unsold stocks of about 0.4m bales are said to be in the hands of a few leading ginners of southern Punjab and upper Sindh having an enormous holding capacity and could easily hold on until the new crop arrives, floor brokers said.

As a result, a big deal of 2,200 bales, from Khanpur ginneries was finalised at the 10-year high rate of Rs3,700 per maund, indicating that spinners and mills still need fine lots for higher counts of cotton yarn, they said.

Some two weeks earlier, some of the spinners had signed forward deals with the ginners for the new crop at Rs3,700 per maund for delivery in the middle of August.

“Ginners seem to be holding on to their unsold positions on the perception that the new crop may be delayed a bit owing to late sowing because of irrigation water problems ,which could further jack up prices in the coming weeks,” brokers said. The local prices generally followed the lead from the New York cotton futures with minor technical adjustments here and there but during the current season, it is moving in opposite direction, they said.

While the New York cotton futures are steadily declining over the last couple of weeks for various reasons, local prices are rising partly because of a short crop, they said.

New York cotton futures on Tuesday were quoted further lower by 0.26 and 0.27 cents per lb at 66.79 and 69.25 cents for both the ruling May and new crop July settlements, respectively.

But there was no change in local average quality lint, which again held unchanged at Rs3,350 per maund.

About 6,000 bales, changed hands late on Tuesday evening, the following being notable among them: 2,200 bales, Khipro at Rs3,400, 1,000 bales, upper Sindh at Rs3,350 to Rs3,400 and 2,200 bales, Khanpur at Rs3,700.