KARACHI, Nov 4: The cotton market on Tuesday maintained bullish trend as prices were quoted further higher by Rs75 per maund despite reports of higher arrivals of phutti for the third consecutive fortnight, major thrust being on the Punjab lint.

According to latest figures released by the Pakistan Cotton Ginners Association (PCGA), total arrivals maintained a steady increase of 24.16 per cent at 5.257m bales for the fortnight ended October 31.

The higher arrivals should have triggered selling by the ginners, but instead they had raised their asking prices despite holding over 1.5m bales in their godowns, cotton analyst Naseem Usman said.

The increase in prices reflected that ginners were least worried over the larger unsold stocks, involving about Rs20 billion, amid predictions of further increase in prices, he added.

He said that the fact spinners were inclined to pay more for fine lots was well-reflected in physical trading where some of the deals were finalised at Rs3,250 per maund.

“The perception behind the hectic mill buying is that the crop may be below the target and prices will rise at the end of the season and the current rates are competitive enough to balance future inventories,” he added.

Market source said spinners and mills continued to build long positions amid hopes that the financial crisis in the US and Europe will end during the next couple of weeks leading to normal export trade of textiles.

New York cotton futures resisted fresh fall and were quoted higher by 0.39 and 0.62 cents per lb at 44.68 and 49.15 cents for both the ruling December and the forward March contracts, respectively.

Official spot rates were quoted higher by Rs75 at Rs3,200 per maund amid active trading.

The following were some of the important deals which were finalised late Tuesday evening:

SINDH VARIETY: 1,600 bales, 1,000, 600, 400 and 1,000 bales, Shahdadpur, Tando Adam, Khipro, Sakrand and Khairpur at Rs3,100, and 1,000 bales, Sanghar at Rs3,050 to Rs3,100.