KARACHI, Jan 5: Trading on the cotton market on Monday resumed on a firm note as follow-up support from the leading mills figured prominently on the fine lots at an average rate of Rs3,200 per maund but the on-balance daily ready off-take was on the lower side.

However, Sindh types, both from the central cotton belt and the upper Sindh, were traded at Rs50 per maund lower as compared to the weekend rate at Rs3,250 as compared to Rs3,300.

But fine lots from the southern Punjab cotton belt were traded around Rs3,300 per maund and the inferior ones at an average rate of Rs.3250 per maund.

Floor brokers said owing to reports of pick-up in export business, notably for fine lint, and higher counts of cotton yarn, fine lots remained in active demand but they ruled out the possibility of fresh increase in prices at this stage for delivery problems.

The general perception among the spinners and mills is that the new year is expected to be better in terms of export business than the previous one owing to financial crisis, they said.

“We eyeing the future export business as financial crisis in the western world is easing and the textile sector could be the chief beneficiary during the first quarter and after that,” a leading spinner hoped.

But much would depend on the smooth sailing on the export front if all went well with the textile importing countries and local competitive prices of lint, they said.

Meanwhile, cotton sale rose to 0.260m bales, up to Dec 31, 2008, which also included 30,078 bales of the old crop, out of which 0.219 bales, had already been shipped to various foreign destinations during the same period. Official spot rates were firmly held at the weekend levels of Rs3,250 per maund but in the ready section fine lots were traded higher.

The following are some of the lots, which changed hands in the ready section:

SINDH TYPE: 3,000 bales, upper Sindh at Rs3,200 to 3,250, 600 bales, Moro and 400 bales, Jhole, at Rs3,200, 2,000 bales, Shahdadpur at Rs3,200 to 3,250, 800 bales, Sanghar and 400 bales, Hyderabad at Rs3,150 to 3,250.