KARACHI, May 24: Trading on the cotton market on Monday resumed on a firm note as ginners were not inclined to lower their asking prices on the perception that statistical position will continue to favour them until the arrival of new crop.

Floor brokers said terribly lower unsold stocks of about 0.7m bales lying in their gowdowns have given a tremendous boost to their bargaining position and most of them sell at their own options.

Falling daily offtake reflects that both the ginners and the spinners are trying to outwit each other on the price front but the former are in commanding position as they fully know that spinners are still to go a long way in meeting their annual consumption demand, they said.

Supply position from the world markets are also not that encouraging as despite an increase of 0.9m bales in the total world production an identical increase in consumption will eat away the surplus just in no time.

"The world cotton productions is up by five per cent, but the consumption has outstripped it as was reflected by a decline of 10.5 per cent in the total stocks at 7.7m bales," analysts said.

According to official figures the world consumption of lint including Pakistan has shown a substantial increase surpassing previous years figures, which in turn are keeping prices on the higher side, they said.

"The higher world mill intake shows that the textile sector has already entered its boom cycle for the next five years and Pakistan spinners are the part of the prevailing boom conditions," market sources said.

Local textile sector has already imported about 1.4m bales of lint from various sources and may need another 0.2 to 2.5m bales to make up the local crop shortfall. On the cotton export front, about 27,000 bales were physically shipped during the month of April, the total export since August last year to March 31, 2004 being 0.155m bales, according to official figures.

Official spot rates were, therefore, firmly held at the weekend levels as there was no change in prices on the ready counter. Ready offtake was modest totalling about 3,000 bales as under: 400 bales, Gothki at Rs3,100, 600 bales, Mehrabpur also at Rs3,100 and 2,200 bales, Haroonabad at Rs3,075.