KARACHI, Aug 3: The cotton market on Wednesday showed firm trend followed by reports that picking operations of phutti in the lower Sindh cotton belt remained suspended owing to fresh heavy rain. But there were no reports of damage to the standing crop, which is now in flowering stage, although picking operations of phutti were not possible in wet cotton fields, ginners said.

They said as the arrivals of new crop phutti had dried up, some of the ginners, who had resumed new season operations, had to suspend them partly because of absence of arrivals and partly to bad weather. Market sources said picking operations were expected to resume after about a week when wet fields dried up, provided there was no fresh rain in the lower and central Sindh cotton belt.

However, it is satisfying to note that despite a pressure on new crop supplies, there is no change in the selling prices. But how the ginners react to any increase in phutti prices after the picking operations are resumed will determine ready rates for the new crop, they said.

But some others predict that prices may remained stable around the current level of Rs2,400 per maund or slightly above as spinners and mills have built up long positions after having taken active part in TCP auctions.

Some of their weaker links may, however, remain in the market as their stock positions are not that competitive and they need daily supplies to keep the wheel moving, they said.

They said some of them are also indulging in inter-mill dealing for the current crop both on cash and kind basis to cover their forward positions against foreign sales. Official spot rate were, therefore, again held firm at the previous level of Rs2,350, but brokers said some of the deals were done above them.

New York cotton futures on the other hand recovered from the overnight lower levels on trade buying and rose modestly by 0.25 and 0.19 cents per lb for both the ruling October and the distant December settlements at 50.95 and 52.51 cents, respectively.