KARACHI, July 31: Ginners on Thursday raised their asking prices modestly higher after spinners resumed their normal covering operations against forward sales of cotton yarn and finished textiles.

Trading in the new crop from Sindh resumed at Rs2,450 per maund and as demand picked up, prices steadily rose to close around Rs2,500 per maund, brokers said adding “the future market outlook appears to be firm”.

Wednesday’s active mill buying including some big lots indicate that spinners are expected to remain in the market amid fears of short supply and further increase in prices.

It also reflected that any rate below Rs2,500 per maund both for the current and the new crops is in line with their export parity levels raising hopes that the mill daily offtake could be sustained at the prevailing prices.

Dealers said it was interesting to note that some of the leading spinners are out to grab the floating stock of contamination-free lint from the southern Punjab ginneries and purchased another 5,600 bales at season’s peak rate of Rs2,675.

“The spinner thrust on the current crop was attributed to normal micronaire (above 4 per cent) needed to spin higher counts of cotton yarn, while the new crop is claimed to be of low-mic, well below the normal standards,” they said.

Market sources said most of the leading spinners are claimed to be booked for the next quarter ending Sept 30, and they are out to adjust their forward positions accordingly.

But they are worried over the future price outlook as the recent heavy rain in some of the cotton crop areas has altogether changed both the supply and price outlook.

“If the standing crop is damaged in some of the areas due to rain or face pest attack in the post-rain weeks, there is possibility of further increase in prices but if the situation is normal prices could move lower,” they added.

However, reports coming from the cotton belt indicates with the exception of some areas in the lower Sindh cotton belt where the new crop is slightly damaged, elsewhere, notably in the Punjab cotton belt, the current spell of monsoon rain is beneficial for the standing crop, which is close to flowering stage, they said.

Official spot rates were, therefore, quoted higher by Rs15 per maund, but most of the deals in the ready section were done above them.

New York cotton futures on the other hand remained under pressure and fell further by 0.50 and 0.63 cents per lb at 57.27 and 58.79 cents per lb for both the ruling October and the distant December settlements.

Ready offtake was on the higher side as till late in the evening another 10,000 bales changed hands as under:

NEW CROP SINDH: 200 bales, Mirpurkhas at Rs2,450,400 bales, Sultanabad at Rs2,465, 100 bales, Pithoro at Rs2,475 and 100 bales, Kot Ghulam Muhammad at Rs2,500.