KARACHI, Aug 21: Cotton prices on Thursday rose from the current lower levels as ginners held on to their unsold positions followed by reports of fall in arrivals of phutti into Sindh ginneries.

Most of the deals in the ready section were finalized at around Rs2,600 per maund, which were higher by Rs30 to 50 per maund as compared to overnight rates depending on quality of lint and micronaire, dealers said.

Trading in the ready section resumed at around Rs2,565 per maund, but as the mill demand picked up, prices rose further and on an average stabilized at Rs2,600 per maund, without 15 per cent sales tax, they said.

For the second time during the week, prices had touched the higher mark of Rs2,600, the level at which spinners curtailed their daily offtake because of export parity reasons.

“Local prices seem to be following the trend of the New York cotton futures,” says a leading broker, adding “if they rise, the local lint prices follow suit and if they fall there is a sympathetic decline here.”

After last couple of sessions relative sluggishness, New York cotton futures on Wednesday rose sharply by 1.03 and 1.39 cents per lb at 56.20 and 57.70 cents per lab for both the ruling October and the distant December contracts, respectively.

Floor brokers said there was no immediate bullish news to which the increase in prices could be attributed, it could well be the outcome of supply and demand.

Prices ease after the growers flood the ginneries with their freshly picked up phutti and when there is brief interruption in arrivals owing to various reasons, the consequent pressure on supplies pushed rates higher, they said.

Meanwhile, according to official sources, maiden consignment of about 7,000 bales of the imported lint had arrived here late last month and some more were claimed to be in the pipeline.

But market sources say the quantity of the imported stuff will be too small to influence the local price trend and it will be largely guided by the local bullish or negative factors.

While prices rose in physical trading, the rate committee has lowered the official spot rates for the new crop by Rs30 per maund.

Ready offtake was modest as till late in the evening about 3,000 bales changed hands as under:

SINDH CROP: 400 bales, Mirpurkhas at Rs2,565; 200 bales, Hyderabad at Rs2,575; 400 bales, Tando Adam at Rs2,600; 200 bales, each Jhole and Sanghar at Rs2,600; 600 bales, Shahdadpur also at the same rates.