KARACHI, Aug 2: Cotton market on Wednesday maintained firm outlook as reports of fresh rain in the Sindh cotton belt slowed down arrival of new crop from the interior.

However, unlike the previous session when some of the deals were done at Rs2,525 in new crop, ginners were willing to sell their stocks at a uniform rate of Rs2,500 per maund in line with the official spot rates.

Local ginners said picking operations of phutti remained suspended as reports of fresh rain in the major cotton growing areas of lower Sindh had further delayed them for couple of days.

“The supply position will remain erratic until the current monsoon rain spell ends,” they said, adding “and in turn it could push prices of new crop further higher in the coming sessions”.

Moreover, reports of damage to standing crop in the central Sindh where the downpour is heavy also worried spinners and mills, which could have bullish impact on the prevailing prices.

Market sources said the TCP tender was expected to be actively participated by spinners and leading among them could offer higher prices to grab the floating stock of 32,000 bales. Bids are expected to be opened on Thursday.

Floor brokers said the latest price flare-up in New York cotton futures could further aggravate the price situation in the coming weeks as local prices could rise in sympathy.

New York cotton futures rose by 1.28 and 1.48 cents at 54.73 and 56.76 cents per lb for both the ruling October and the distant December settlements respectively.

Official spot rates were, however, did not show any change and were firmly held at the previous rate of Rs2,500.

Ready off-take in the new crop was light totalling 1,000 bales, the following being some of the notable deals: 300 bales, Mirpurkhas at Rs2,470, 200 bales each from Mirpurkhas, Tando Adam and Sanghar at Rs2,500.