KARACHI, Aug 11: Cotton market on Monday showed firm trend as prices were quoted further higher despite reports of steady arrivals of phutti into the Sindh ginneries.

“New crop supplies are far below the ready demand and until ginning operations are geared up, prices may rise further,” brokers said adding “the post-rain weeks should have improved the arrivals of phutti but the reports trickling in indicate there is no significant increase in them.”

Trading in new crop Sindh resumed Rs25 per maund higher against the weekend close and as the mill demand picked up some of the deals were done around Rs2,550, claimed to be the season’s highest rate.

However, both spinners and brokers discounted rumours that growers are holding back stocks of phutti apparently in a bid to sell them at higher rates.

Ginners from the lower Sindh cotton belt say barring in some pockets where the current rain has affected the standing crop, arrivals of phutti are getting normal each day since the end of the current monsoon spell.

Phutti prices are being quoted around Rs950 to Rs970 per 40 kg as compared to official procurement rate of Rs850 and the growers are not holding on to their stocks and selling them at the prevailing prices, they said.

“There are not many instances of unfixed phutti as barring some big growers, all others are selling at prices linked with the new crop lint,” they said.

Market sources attributed the current price flare-up to pressure on ready supplies rather than any speculative tendency both on the part of ginners and spinners.

New crop prices are expected to remain on the higher side until picking operations start in the central Punjab cotton belt, brokers said adding “the spinners from Punjab will rely on local supplies rather than opting for the Sindh lint, which in turn pushes prices higher.”

Meanwhile, reports coming from the upper Sindh and the southern Punjab cotton belt, the two major fine cotton producing areas indicate that the growth of the new crop is normal and there are no alarming incident of pest attack.

Official spot rates were further marked up by Rs15 but in the ready section new crop lint was a bit expensive.

Ready offtake remained light as till late in the evening about 1,500 bales of new crop changed hands as under: 300 bales, Tando Adam at Rs2,525 400 bales at Rs2,540 and 200 bales, Sultanabad at Rs2,550.