KARACHI, March 31: Cotton market on Thursday showed firm trend as spinners and mills remained active buyers, notably for fine lots at the current levels but inferior stuff was neglected in the absence of exporters.

Analysts said spinners were a bit optimistic about the Islamabad meeting which was convened to set guidelines for the disposal of 1.6m bales of lint stored in TCP godowns as a big amount of about Rs18bn is tied to it.

They said spinners hoped that the government would allow partial sales to the local industry to export it after adding value to it and a part of it would be sold to foreign buyers after inviting international tenders.

Market sources said the local textile industry was fully booked with firm forward import orders both for cotton yarn and made-ups and the TCP should oblige them as they still needed a lot of fine lint to cover their forward sales.

The TCP has purchased fine lots according to international standards at Rs2,159 per 40 kg and spinners may be willing buyers at the prevailing price of Rs2,325 per muand, they said.

Most of big deals of quality lint were finalized between Rs2,300 to Rs2,350 per maund as spinners needing medium staple length lots to cover their forward sales were willing to pay a bit more, brokers said.

Official spot rates for an average quality lint were again quoted around Rs2,250 per maund. However, both the fine lots from the upper Sindh and southern Punjab ginneries were sold at par around Rs2,350 per maund.

Floor brokers said an erratic price movement being showed by the New York cotton futures did not influence the local price line as according to market sources spinners were out of the foreign markets.

New York cotton futures were further marked down by 0.20 and 0.43 cents for both the ruling May and the distant July contracts at 53.38 and 54.47 cents per lb, respectively. Local official rate were held unchanged.

Ready off-take was light totalling about 10,000 bales the following being some of the notable deals: 2,000 bales, upper Sindh at Rs2,300 to Rs2,350, 2,000 bales, Rahimyar Khan at Rs2,300 to Rs2,325, 1,000 bales, Sadiqabad at Rs2,200 to Rs2,250 and 1,000 bales, Mailsi at Rs2,325.