KARACHI, July 18: Cotton prices on Wednesday maintained their bullish tone as official spot rates were revised upward by Rs25 per maund amid active trading.But in the ready section some of the deals were finalised at 10-year high of Rs3,150 per maund, brokers said.

However, the market was expecting that the government may offer some incentives for lint import to the textile sector in the backdrop of higher world lint prices, they added.

But ginners were not inclined to lower their selling prices which they claimed were based on the higher phutti rates well above Rs1,400 per 40 kg, they said.

In physical trading most of the deals were finalised higher by Rs25-50 per maund at Rs3,150 for the central Punjab type, while its counterpart in the lower Sindh cotton belt also showed a sympathetic and rose to Rs3,050.

Unlike the previous sessions, spinners and mills remained active buyers at each rise as fears of a short crop and higher world prices continued to haunt them.

Cotton analysts said the current year may prove a crisis year for the textile sector as prices of value-added products were not showing corresponding rise on the international market as did lint.

But some others said the limit-fall of 2.31 and 2.05 cents per lb at 63.61 and 65.70 cents per lb both in the ruling October and distant December contracts on the New York Cotton Exchange indicated that retreat had begun and speculative rise now may not have any relevance to the objective conditions.

Local prices are also expected to ease from the current high levels as import of lint may become competitive in the coming sessions, they hoped.

Ready offtake in the new crop was active, the following being some of the notable deals:

SINDH VARIETY: 400 bales, Sultanabad at Rs3,000 to Rs3,050, 200 bales, Shahdadpur at Rs3,000 and 400 bales, Mirpurkhas at Rs2,950 to Rs2,975.