KARACHI, July 19: Cotton market maintained a firm trend on Saturday despite the fact that the new trade policy was silent on the widely rumoured textile package.

Floor brokers said what worried spinners and mills at this early stage of new season was rising prices of lint and conflicting reports about the future supplies.

“The rising trend both in phutti and lint prices since Tuesday is based on the crop condition and fear of damage in certain areas by the pest attack,” they said.

What seems to have further aggravated the supply position is a considerable fall in the phutti arrivals into ginning factories of the central Punjab, they said.

Lint rates have almost stabilised around Rs4,000 per maund, while phutti is being sold at Rs1,925 to Rs1,950 per 40 kg and spinners fear that the sudden decline in phutti arrivals may turn lint more costly, said a cotton analyst.

He said the other factor, which caused the current price flare-up to Rs4,000 per maund was the entry of the private sector exporters in the market at this early stage and are covering their forward sales against deals signed with the Indian importers.

According to market sources exporters had so far sold about 10,000 bales to India fuelling price increases.

Official spot rates were firmly held at Rs3,700 per maund consolidating the last two sessions gain of Rs100.

New York cotton futures on the other hand posted fresh fractional gains of 0.06 and 0.13 cents per lb at 70.35 and 73.24 cents for both the ruling July and forward October contracts respectively.

The following notable deals were finalised on Saturday evening in the ready section.

SINDH TYPE: 200 bales, each Hyderabad and Shadadpur at Rs3,985 and 400 bales, Sanghar at Rs3,985 to Rs4,000.

PUNJAB VARIETY: 600 bales, Khanewal at Rs3,985 to Rs4,000, 1,000 bales, Burewala at Rs4,000, 400 bales, Gaggon at Rs3,975 to Rs4,000, 200, each Pir Mahal and Arifwala and 1,000 bales, Chichawatni at Rs4,000 and 200 bales, Mian Channu at Rs3,975.