KARACHI, Dec 23: Cotton prices on Friday remained stable around the previous levels as ginners held on to their long unsold positions anticipating a big push during the next year based on a short crop.

A sharp increase in New York futures after several lean sessions reflected that the world market was heating up and could have sympathetic impact on the local prices during the next year.

“The global production of cotton is much lower than the current year’s estimated consumption, cotton analysts said, adding “the local lint is expected to benefit if the current price flare-up on the world markets is sustained”.

But market sources say the local crop is well below the last year’s total of 15m bales but is enough to meet the local industry’s demand owing to larger carryover stocks and imports of longer staple lint for blending purposes.

“Wider use of polyester fibre in some cases touching the high limits of 30 to 40 per cent also means lower intake of lint leading to no pressure on local supplies”, they added.

Ready off-take was again slow as spinners were not inclined to go beyond their export parity levels, while on the other hand ginners have raised their asking prices.

Most of the deals in physical trading were, however, done well above the official spot rates, reflecting that ginners were not ready to sell below their conversion charges and a modest profit after having purchased phutti at higher rates, brokers said.

Phutti prices were quoted well above Rs1,100 per 40 kg, although small growers had already sold it below the prevailing rates, they added.

Local official spot rates remained stable at the previous level of Rs2,375 per maund but on the other hand the New York cotton futures rose by 1.29 and 1.06 cents at 54.14 and 54.64 cents per lb for both the ruling March and the forward May settlements respectively.

Ready off-take was modest at about 10,000 bales, the following being some of the notable deals: 5,000 bales, Gothki, Daharki and Mirpur Mathelo at Rs2,400 to Rs2,425, 1,000 bales, each Sadiqabad and Multan 400 bales, Khanewal and 800 bales, Nurpur at Rs2,400 and 800 bales, Sardar Lund at Rs2,370.