KARACHI, Aug 8: Cotton market maintained a firm trend on Friday but physical activity remained on the lower side despite the fact that some of the Sindh ginners reduced their asking prices to Rs4,175 per maund.

Apart from strike by ginners, the other factor causing slowdown in the ready market was that the ginners in the Punjab cotton belt observe Friday as a weekly holiday instead of Sunday in Sindh, floor brokers said.

They said pressure on ready supplies would continue in the coming sessions also if ginners strike continues during the next week also which may push prices further higher.

Cotton analysts said extensive damage to standing cotton crop in the D G Khan cotton belt, which has now assumed the role of a fine cotton producer, would not only lower total production projections but would also influence prices on the higher side. Final crop losses in that area would be known by the next couple of weeks after figures are collected by the Punjab agriculture department, they said.

“The sailing on the cotton front again may not be smooth, which can well prove another bad year for the export-orient textile sector,” market sources said, adding: “fresh increase in lint prices could erode their competitiveness on the world textile market owing to higher local prices.”

Spinners are also worried over strong rebound staged by the New York cotton futures after having fallen to around 66 cents per lb recently, which would make import of lint more expensive.

The spinners and mills who have forward buying for September delivery (around 66 cents per lb) may benefit as both the contracts are again heading above the 70-cent per lb mark, they said.

New York cotton futures were quoted at 69.33 and 71.38 cents per lb for both the ruling October and the forward December contract, respectively, up by 1.87 and 1.82 cents.

Local official spot rates were, however, held unchanged at Rs4,250 per maund after having risen sharply during the last couple of sessions.

The following are some of the deals reported to the Karachi Cotton Association by brokers: 400 and 200 bales, Shahdadpur and Sanghar at Rs4,175; 300 bales each Harappa and Khanewal at Rs4,375.