KARACHI, June 20: The cotton market gave firm outlook when trading resumed on Wednesday.

However, activity remained restricted because of shortage of quality cotton with ginners.

Floor brokers said that shortage of quality cotton from the out-going season is keeping tight supply position though there had been a substantial demand from needy mills.

Arrival of new crop from lower Sindh is gradually picking up, but brokers said that the quantity is so small that it could not meet the demand from spinners.

Consequently, amid slow trading, raw cotton prices remained steady.

The world raw cotton prices also remained firm, particularly New York cotton market which moved higher for all future contracts, analysists said.

There are strong indications that new crop will also be bumper because most of the growers in Punjab and Sindh had used BT cotton seeds.

However, heavy monsoon rain and flood is the only factor which is creating apprehension because for the last two consecutive years, the crop was being badly damaged in lower Sindh.

The Karachi Cotton Association (KCA) spot rates remained firm at overnight level.

On ready counter, moderate business activity was witnessed where some spinners managed to get hold of some quality cotton.

The following deals were reported:

400 bales from station Multan (low quality) done at Rs5,000, 200 bales from Duniapur done at Rs5,800, 368 bales from Burewala done at Rs6,000 and 200 bales from Mian Chanoo (credit) done at Rs6,600.