KARACHI, March 18: Cotton market opened on a firm note on Monday as despite higher arrivals of phutti into the ginneries prices maintained their upward trend followed by active mill demand.

Both spinners and mills remained active buyers at current rates depending on quality and lifted all the lots, including the big ones mostly at the asking prices.

The arrivals of phutti into the ginneries for the fortnight ended March 15, were on the higher side of the market perceptions, but as the mill demand remained fairly steady they did not have a bearish impact on the price outlook, says a leading cotton broker.

He predicts prices may not touch the high mark of Rs2,000 per maund for the near-term, they could inch to this level at the fag-end of the season.

For the near-term the larger unsold stock of 1.5 million bales lying with the ginners as compared to previous year’s 1.2 million bales may not allow any speculative jump in prices as spinners are expected to maintain an equilibrium after not indulging in panic buying, market sources said.

Although the arrival figures released the Pakistan Cotton Ginners Association (PCGA) for the fortnight ended March 15, were nominally lower by one per cent, but the pace of arrival of phutti signals that the total crop figure could swell to 10.2 million bales and that will ensure easy supply to the textile sector.

But whether or not prices could maintain their current pace of progressive increase is not clear as much will depend on the export orders from the foreign buyers and the price they get for the value-added products.

According to arrival figures, out of the total of 9.863 million bales, spinners have purchased 8.1 million bales, TCP 0.187 million bales, and the private sector exporters 72,000 bales, leaving an unsold stock of 1.5 million bales with the ginners as against the last year year’s comparable figure of 1.2 million bales.

The official spot rates for lint in trade was further up by Rs25, total during the last one month being Rs150 and dealers predict further rise in the coming weeks in line with international prices.

The notable feature was that odd lot business was noted as some of the ginners cleared their entire unsold stock.

Ready offtake was active as till late in the evening about 8,000 bales changed hands, the following being some of the notable deals: 2,900 bales of Bhiria City at Rs1,685, 900 bales, Bhiria Road at Rs1,685, 1,600 bales, Moro also at Rs1,685, 600 bales, Moro at Rs1,535 and 1,175 bales of Rajanpur at Rs1,675.