KARACHI, Aug 27: Cotton market on Friday showed firm trend as ginners again raised their asking prices and spinners were willing buyers at the higher rates.

Unlike the overnight shaky performance, the opening was on the higher note as a considerable decline in arrivals of phutti again forced ginners to raise prices.

Most of the deals on Friday changed hands at Rs2,350 per maund unlike the overnight rates of Rs2,225 to Rs2,300 at which some 7,000 bales were traded. Some leading brokers predicted further flare-up in prices in the coming sessions on supply and demand factors.

Spinners and mills have curtailed their daily intake hoping decline in prices after the phutti arrival position improves, dealers said. But on the other hand central Punjab lint was sold at a discount as compared to its Sindh counterpart because of quality factors and low-mic.

"The cotton market appears to be slipping into the hands of the growers who are not inclined to get below their economically viable prices", brokers said "there could be price flare-up similar to that of the last year if growers held on their stocks of phutti for another week or so".

Last year phutti prices averaged about Rs1,400 per 40 kg partly owing to pressure on supplies in the backdrop of pest attacks and partly to panic-buying by ginners. The interesting feature was that while the New York cotton futures are unstable and fell further on speculative selling, local prices are rising for the last couple of sessions despite reports of a bumper crop, market sources said.

World prices are edging lower on reports of higher global production and lower consumption for the current year ending on Aug 31, 2004. New York cotton futures on Thursday finished with fresh sharp decline of 1.84 and 1.69 cents for both the ruling October and the distant December settlements at 48.40 and 49.08 cents per lb respectively.

Official spot rates were marked further higher by Rs50 at Rs2,275 in line with at which physical business was being transacted. Ready off take was modest as till late in the evening about 5,000 bales changed hands, the following being some of the notable deals:

SINDH VARIETY: 800 bales, Tando Adam at Rs2,350, 200 bales, Pithoro, 400 bales, Mirpurkhas 800 bales, Shahdadpur and 400 bales, Sangharat also at this rate.

PUNJAB TYPE: 400 bales, Chichawatni at Rs2,275, 800 bales, Sahiwal at Rs2,250 to Rs2,275 and 400 bales, Gaggon at Rs2,275.