KARACHI, May 6: Cotton market on Saturday showed firm trend as ginners raised their asking prices in an apparent move to keep a bold face in the backdrop of higher unsold stocks lying in their godowns.

Floor brokers said there was a loud whispering in the market after realisation of final crop figures by the Pakistan Cotton Ginners Association (PCGA) that ginners may have to lower their asking prices owing to higher unsold stocks worth Rs12 billion.

The ginners resolve to hold on the price line according to their parity levels was well-reflected in a deal, which was finalized at the season’s best level of Rs2,500 per maund, brokers said.

But ginners appeared to be a little worried over the unsold figures on the perception that spinners and mills still need a substantial quantity of lint to meet their annual consumption needs, they added.

The APTMA demand to ban further export of lint cotton by the TCP or the private sector exporters also did not have any negative impact on the local lint prices, which in normal situations should have.

The battle of wits between the ginner and spinner will continue to outwit each on the selling prices as both will try to keep the balance in their respective favour, market sources said.

The new crop from the lower Sindh cotton belt is expected to reach the market by the end of next month or early July and by that time supply and demand factors will prove decisive in the future price fixation, they added.

Meanwhile, reports coming from the major crop areas indicate that growers have prepared the land for the sowing of new crop, which is expected to be resumed by May 15, and will end by June 15.

New York cotton futures after modest declines during the last couple of sessions and fell by 0.15 cents per lb for the matured NY settlement, while the forward July showed a fractional gain of 0.3 cents per lb at 48.70 and 50.31 cents, respectively.

There was, however, no change in official spot rates which stood firm at the last levels despite higher prices being quoted in physical trading.

Ready off-take was light totalling about 5,000 bales, the following being some of the notable deals: 1,000 bales, Rahimyar Khan fine quality at Rs2.500, 1,000 bales, Tiba Sultan at 2,440 and 1,000 bales, Saeedabad, Sindh at 2,460.