KARACHI, March 1: Cotton market closed the weekend session on a firm note as ginners remained in a commanding position aided partly by short supply and partly to the continued price flare-up on the New York Cotton Exchange.

Big lot business was witnessed both in fine variety from Sindh and the Punjab as spinners were not inclined to take a technical breather amid fear of fresh increase in prices and readily picked up all the lots offered by ginners at their asking prices, floor brokers said.

“The local market may not be literally following the international price trend but ginners appear to be in an upbeat mood as for the future price outlook is concerned,” market sources said adding “that was perhaps they were not in a hurry and offered only those lots, which are picked up by the spinners in line with their parity levels”.

New York cotton futures on Saturday crossed the barrier of 80 cents per lb for the ruling May contract and was quoted around 81.86 cents, up with a limit gain of 2.53 cents, while the maturing March rose by 1.53 cents per lb at 79.66. July delivery also rose to new peak level of 83.52 cents.

Floor brokers said that in the developing world cotton scenario it may not be an easy task for the textile sector to remain competitive in a hostile world market for the end-products.

It was perhaps in this background that the caretaker textile minister, in his meeting with the KCA board of directors and those allied with the cotton trade on Saturday, emphasised the need to grow more cotton instead of sugarcane and pleading for official ban on setting up new spinning units, they added.

Although spinners and mills had made forward import deals with India and some other countries but the recent price flare-up of well over 12 cents per lb in the New York cotton futures during the last two weeks has slowed down the physical shipments by the exporters, they said.

“I think some of the exporters may ask a revision in prices in line with the world rates as most of the previous deals are finalised around 72 cents per lb,” said a leading spinner, adding “the price revision demand may be coming shortly”.

Meanwhile, the Pakistan Cotton Ginners Association (PCGA) is expected to release the details of arrival figures of phutti for the month of February possibly by the middle of the next week, market sources said.

Official spot rates did not show any change and were firmly held at Rs3,200 per maund for the third session in a row.

The ready off-take confined to mostly fine lots was as under: Rs3,800 bales, upper Sindh at Rs3,350 and 2,400 bales, Shujaabad at Rs3,200 to Rs3,250.