KARACHI, May 30: Cotton market on Tuesday maintained a firm trend as ginners further raised their asking prices amid falling unsold stocks with them. An idea of snap price flare-up may well be had from the fact that some of the deals were finalised at the seasonal highest level of Rs2,600 per maund and brokers predict the market could further heat up in the coming sessions on fears of pressure on ready supplies.

Some of the private sector exporters, who had procured lint stocks earlier in the season at much lower rates, sold a modest lot of 500 bales at the season’s peak level so far at Rs2,600 per maund, brokers said.

“It is more profitable to sell stocks at the ruling prices here rather than opting for export against forward deals,” one exporter said, adding “why should we feed foreign textile industry at the cost of our own” they added.

There is a loud whispering in the market that the prices are poised to rise further as unsold stocks with ginners are falling each day as leading spinners are out to grab the floating stock at the current levels.

“As the TCP is silent on fresh sales of lint, spinners and mills opted for the local stuff lying with the ginners leading to fresh increase in prices”, says a leading ginner and added that “the unsold stocks with the ginners now may not be more than 0.3m bales.”

Some other spinners and mills, who have enough supplies until the arrival of the new crop from the lower Sindh cotton belt, kept to the sidelines and did not fuel the price flare-up.

Official spot rates were, therefore, raised by Rs25 to Rs2,475, although in ready section some of the deals were finalised at much higher rates.

Ready business was light totalling 3,000 bales as under: 1,000 bales, from various Punjab stations at Rs2,600, 1,000 bales, Jehania at Rs2,580, 400 bales, Bucheri at Rs2,500 and 400 bales, Mehrabpur at Rs2,550.