KARACHI, Oct 11: Cotton market on Thursday maintained a firm outlook as ginners firmly held on to their positions followed by predictions of further increase in prices.

“Pent-up mill demand could make bigger showing any time and that could well lead to a fresh price flare-up irrespective of supply and demand factors”, most leading brokers predict.

But lint cotton from the central Punjab ginneries was sold at a discount as compared to its Sindh counterpart, most of the deals were finalized between 1,625.00 to 1,650.00 per maund.

The fact that prices are stable above Rs.1,600.00 per maund reflects that bad days for lint cotton are already over and prices could rise from the current levels after the mills demand gets normal, they added.

The perception of future bull market was also reinforced by the rebound made by the New York cotton futures after having fallen to 20-year lows a couple of sessions before.

Floor brokers said the Afghan war may have slowed down foreign trade from this region but as the importers are getting out of the fears of disruption in supplies are claimed to placing fresh orders with their decades old trading partners.

Owing to imposition of war risk charges and hike in freight rates, the local lint may be a bit expensive on the world markets but not that expensive, which could drove buyers away, they added.

It is satisfying to note that both spinners and exporters are getting out of their shells and most of them have resumed their normal market operations.

“The sword of TCP is hanging on their heads and no one among them is inclined to be browbeaten at this stage or take supply risks as they have to keep wheels of their industry moving”, one dealer said.

The presence of TCP in the market to ensure competitive price both for the grower and the mills is expected to keep prices stable for local as well foreign customers.

It was perhaps in this background that official spot rates were raised further by Rs.25.00 per maund and most of the deals in the ready section were done well above them depending on quality.

After ruling bearish for the last couple of sessions, New York cotton futures also recovered by 0.55 and 0.67 cents per lb at 31.20 and 32.32 for both the maturing October and the ruling December contracts.

Ready business was moderate as spinners made selective buying because of higher asking prices. The following are some of the deals, which gone through on Wednesday evening.

SINDH TYPE: 200 bales of Shahpur Chakker at Rs.1,650.00, 400 bales of Khipro at 1,700.00, 400 bales of Sanghar at 1,675.00 and 200 bales of Shahdadpur at 1,675.00.