KARACHI, Jan 3: Cotton market on Monday opened on a higher note as mill demand remained active around the previous levels but ginners held on to their unsold positions awaiting the arrival figures of phutti into the ginneries.

Rumours of higher arrivals of phutti for the fortnight ended Dec 31, dominated the trading as ginners anticipating fall in the total mostly held on to their positions anticipating further increase in prices, brokers said.

But it is speculated the figure may not be that big as it has been during the last four months, showing successive increase over the previous total. But the total could be close to 13m bales.

However, fine lots from the upper Sindh ginneries remained in strong demand and most of the deals were done around Rs2,000, while some fine lots were sold at Rs2,025 per maund, they said.

"Bulk of the fine lint about 2.5m bales has already been purchased by the TCP", they said "spinners and mills are engaged in mopping operations of the leftover lots, notably in the upper Sindh ginneries".

Most cotton analysts predict prices could rise from the current levels irrespective of the arrival figures as spinners and mills have still to go a long way to cover their forward positions against foreign sales.

According to them bulk of the lint lying with ginners is of different mics and is being sold according to quality premiums, some of the inferior lots are fetching not more than Rs1,725 per maund.

Meanwhile, reports of Rs5 per kg fall in polyester yarn prices was welcomed by the spinners and mills as it has enhanced their buying capacity to lift lint at the higher rates to maintain their competitiveness on the world markets.

Spinners and mills are now using about 30 to 40 per cent polyester to produced blended yarn and cloth for export markets, brokers said. Official spot rates for inferior types of lint were lowered by Rs15 per maund, while premium lots are being sold between Rs1,950 to Rs2,025. Ready off-take was modest totalling 15,000 bales as under.

SINDH TYPE: 1,000 bales, upper Sindh at Rs2,000, 1,200 bales, Khairpur at Rs1,900, and 400 bales, Sanghar at Rs1,725.