KARACHI, Oct 16: Cotton market maintained a firm trend on Thursday as spinners and mills continued to build up long positions at the current levels amid a loud whispering of supply-based price flare-up.

Most of the deals on the ready counter were at an average rate of Rs3,500 per maund, although some fine lots were traded as higher as Rs3,535, dealers said.

The interesting feature was that the market did not respond bearishly to renewed plunge on the international financial and commodity markets, notably the New York cotton futures, which were marked down by limit-losses.

After showing signs of recovery in line with the other world markets after the massive US bailout package, the New York cotton futures again fell to close with net limit-fall of 2.63 and 2.71 cents per lb at 47.54 and 51.88 cents for both the ruling December and the distant March contracts, respectively.

However, the local market behaved according to local supply and demand situation and the overnight levels as mills demand remained active for both the Sindh and the Punjab types around the current asking prices.

Floor brokers said the future market direction would be guided by latest arrival figures of phutti into the ginneries for the fortnight ended Oct 15 and if they are again on the higher side, prices could fall from the current levels.

“Owing to the turmoil on the world financial markets, the outlook on the textile export front is not that encouraging but spinners and mills are covering positions for a better future after sanity returns to the international markets,” they added. Mills ready off-take was maintained on the higher side amounting to about 25,000 bales as under:

SINDH VARIETY: 3,000 bales, each Shadadpur and Tando Adam at Rs3,400 to Rs3,500; 2,000 bales, Sanghar at Rs3,400, 1,600 bales, Mirpurkhas at Rs3,300 to Rs3,450, 600 bales; Hyderabad at Rs3,400 to Rs3,450; 1,200 bales and Nawabshah at Rs3,500 to Rs3,525.

PUNJAB TYPE: 1,400 bales, Bahawalpur at Rs3,525; 800, 1,200, 400 each, 200 each, 600 each; 200, 600, 1,200, 200 and 400, Khanewal, Rajanpur, Fazal Pur, Haroonabad, Rahimyar Khan, Layyah, Arifwala, Lodhran, Janpur, Mian Channu, Burewala, Ahmedpur East, Sadiqabad, Mongi Bangalow, Renala Khurd and D G Khan at Rs3,500, and 2,400 bales, Gaggon Mandi at Rs3,485 to Rs3,500.