KARACHI, Dec 30: Cotton market started the opening session of the week on a firm note as spinners remained active buyers at the current levels but ginners were reluctant sellers.

Entertaining higher price ideas during the next couple of weeks based on lower final crop estimate, ginners have curtailed their daily average offers in a bid to hold on to their unsold stocks at least for the next couple of weeks.

Spinners are following the manoeuvring of the ginners and have lured weaker links among them to indulge in forward trading at higher rates. As a result, about 2,000 bales of K-68 Sawgin from the upper Sindh ginneries changed hands at Rs2,200 per maund.

“On one-credit, with a premium of over Rs100 per maund the forward deals are quite in line with the spinner perceptions and they may not be losers in the final analysis”, one broker predicts.

The general perception among the ginners and the brokers is that prices could rise sharply higher from the current range-bound level of between Rs2,100 and Rs2,650 per maund on the higher side during the next couple of weeks.

“The local crop may not be that short but prices will generally be guided by the international supply and demand factors”, says a leading ginner “as the world prices above 50 cents per lb level may be too expensive for the local spinners, they will prefer the local stuff and hence the price flare-up”.

But market sources said the crop position is still unclear and it will be known by the end of the next month and by that time prices could show minor either-way movements.

However, it is clear by that time the grower will be out of the market and the ginner and the spinner will hold the fort. The holding capacity of the former could well prove the price determining factor, they added.

Official spot rates were quoted around Rs2,100 per maund but in the ready section most of the deals were done according to quality of lint in trade.

Ready offtake was relatively slow as ginners have raised their asking prices for the fine lots and spinners were not inclined to chase them. About 15,000 bales changes hands as under:

SINDH TYPE: 1,600 bales, Nawabshah at Rs2,125, 400 bales, Bucheri at Rs2,085, 300 bales, Khipro at Rs2,075, 500 bales (K-68), Dharki at Rs2,165, 900 each Gothki and Dharki on one-month credit at Rs2,200, 500 bales, Pano Akil at Rs2,200.

PUNJAB VARIETY: 1,000 bales, Liaquatpur, 400 bales, Bahawalpur, and 1,000 bales, Jalalpur at Rs2,100, 1,000 bales, Rajanpur at Rs2,150, 400 bales, Mian Channu at Rs1,975, 1,000 bales, Haroonabad at Rs2,125, 200 bales Rahimyar Khan at Rs2,150 and 400 bales, Chichawatni at Rs1,950.