KARACHI, Feb 17: Cotton market finished the weekend session on a firm note as leading ginners mostly held on to their positions and did not lower their asking prices for the fine lots.

Fine lots from the upper Sindh and the southern Punjab cotton belt were again traded around Rs2,600 per maund but others changed hands between Rs2,435 on the lower side and Rs2,575 on the higher side in line with quality premiums, floor brokers said.

The current standoff on the cotton market reflects rigid positions taken by both the spinners and the ginners over the selling prices, they said, adding ginners are in no mood to lower their asking prices as they know that the crop is short, while the spinners are tied down by their export parity perceptions for the textiles.

“It may be a no-win situation,” said a ginner “but ginners who have the holding capacity will be the ultimate gainers during the weeks to come”.

Persistent increase in the New York cotton futures did worry spinners amid fears that its impact on the world markets may be positive and the local ginners could hardly be an exception, he said.

New York cotton futures ended with fresh modest rise of 0.35 and 0.09 cents at 54.00 and 52.32 cents per lb for both the ruling March and the distant May contracts respectively.

Despite major production surplus by the major cotton producing countries including the US and India future price outlook appears to be bullish and that perception is keeping local ginners in a bullish mood, brokers said.

“Both the sellers and the buyers are fully aware of the developing situation and indications are that supply and demand factors will finally prevail as far as the future price outlook is concerned,” analysts said.

Official spot rates were again quoted at the previous level of Rs2,525, while in physical trading rates were mostly quality-based.

Ready offtake was modest totalling 10,000 bales. Following being some of the notable deals:

SINDH VARIETY: 2,000 bales, upper Sindh at Rs2,600, 200 bales, Dadu at Rs2,435, 300 bales, New Saeedabad and 400 bales, Setharaja, at Rs2,440.