KARACHI, Aug 4: Steady conditions were witnessed on the cotton market on Wednesday as prices of the new crop were quoted further higher by Rs25 per maund.

Market sources said owing to rain in some of the areas of the lower Sindh cotton belt, picking operations of phutti have been suspended until the cotton fields get dry and the consequent decline in arrivals of the commodity in the ginneries caused the current price flare-up.

Lint prices could rise further higher in line with phutti in case of more rains in the central Sindh cotton belt, they added. Another contributory aiding factor was sharp rebound staged by the New York cotton futures after several lean weeks followed by revival of speculative support, they said.

But spinners who were entertaining the idea of further fall in the lint prices were surprised over the sudden turn in the market psychology for the better. Most of the leading spinners and mills kept to the sidelines as no one among them was in an obliging mood as was reflected by a couple of deals.

"After having fallen to the seasonal low of Rs2,200 per maund, lint prices rose by Rs100 during the last two sessions as ginners raised their asking prices in line with the phutti rates", brokers said.

On Wednesday some of the deals were finalized at the day's peak level of Rs2,300 per maund but both ginners and spinners could not precisely predict about the future price outlook.

Meanwhile, cotton experts said the current wave of monsoon rain is timely as it will help the growth of plant at the flowering stage and will wash insects and pests if any on the standing crop.

Reports from the central Punjab cotton belt also confirm fresh rain in some of the areas but the southern Punjab cotton belt is still in grip of dry and hot weather, brokers said.

New York cotton futures recovered from the recent lows, up by 1.16 and 1.19 cents at 45.46 and 45.95 cents per lb for both the ruling October the forward December settlement respectively.

Ready off-take was light as till late in the evening about 1,000 bales of the new crop Sindh changed hands as under: 400 bales, Mirpurkhas at Rs2,300, 200 bales, Khipro at Rs2,300 and 200 bales at Rs2,275.