KARACHI, Sept 25: Cotton market on Tuesday maintained firm trend as spinners and mills continued to build up long positions at the current levels fearing fresh increase in prices.

About 20,000 bales changed hands on an average rate of Rs3,000 per maund, which reflected an increase of Rs50 per maund during the last two sessions.

But later in the evening a leading broker said some deals both in the Punjab and Sindh lint were also finalised at Rs3,025 per maund, signalling that spinners were out to grab the floating stock even at the higher asking prices.

The notable feature was that the both the Sindh and the Punjab lint were traded at the same rates apparently ending big quality premium of about Rs100 between the both. The Sindh lint has been selling at premium as compared to its Punjab counterpart.

Floor brokers said ginneries in the upper Sindh and the southern Punjab had resumed full operations and indications were that steady phutti arrivals could stabilise prices around the current levels, which apparently are in line with parity levels of the spinners.

“The current scramble for lint by the spinners and mills may cause another price flare-up,” fears a spinner “leading among them are out to corner the floating stock which eventually will lead to price increase beyond the parity levels”.

Meanwhile, reports reaching here from the major cotton growing areas indicate that phutti picking operations have been resumed, which were suspended after the recent rain.

Official spot rates were again held unchanged at Rs2,850 per maund, but in the ready section most of the deals were finalised well above them.

New York cotton futures on the other hand showed divergent trend and while ruling October contract fell 0.24 cents at 63.24 cents and the forward December rose by 0.15 cents per lb at 66.23 cents.

About 20,000 bales changed hands in physical trading late in the evening, the following being some of the notable deals:

SINDH TYPE: 1,600 bales, Tando Adam, 1,800 bales, Shahdadpur, 200 bales, Hyderabad, 800 bales Nawabshah, 400 bales, Mehrabpur, 200 bales, Pithero, 400 bales, Khairpur and 200 bales, Kumb, all at Rs3,000, 1,000 bales each Sanghar and Mirpurkhas at Rs2,975 to Rs3,000.