KARACHI, May 24: The cotton market on Wednesday showed firm trend as official spot rates were revised upward by Rs25 per maund in line with those at which physical business is being transacted.

In the ready section, some big lots of fine variety from southern Punjab ginneries changed hands between Rs2,500 and Rs2,525 per maund, as fears of pressure on supplies haunted spinners, brokers said.

With new crop from lower Sindh ginneries still far away and the TCP is silent on its fresh sale tender, the spinners and mills opted for unsold stock lying in ginners’ godowns and the ginners raised their asking prices after their re-entry into the market, they said.

The contributory support factor behind the price flare-up was a sharp rebound staged by New York cotton futures after having remained under pressure for the last couple of sessions in the absence of demand, market sources said.

“The entry of China again after a lull of several weeks, seems to be the chief bullish factor behind the price flare-up, they said. “Spinners found the cue of developing situation on the cotton front and resumed fresh covering purchases.”

New York cotton futures on Tuesday rose by 1.61 and 1.65 cents per lb at 50.78 and 53.90 cents for both the ruling July and new crop October settlements, respectively.

“Above 50 cents per lb, imports of lint are a bit expensive,” spinners and mills claim, “which in turn make export of textiles uncompetitive in the world markets.”

The local ginners, well aware of the future supply and demand factors and meagre unsold stocks with them, are trying to set market trend according to their own price ideas, spinners said.

Official spot rates were raised by Rs25 at Rs2,450 per maund in line with higher quality premiums for the lots in trade.

Ready business was modest totalling 5,000 bales as under: 1,000 bales, Mirpurkhas at Rs2,500 to Rs2,510; 2,000 bales, Rahimyar Khan at Rs2,515 to Rs2,525.