KARACHI, Oct 24: Cotton market on Monday reopened on a higher note as ginners raised their asking prices in line with the phutti rates at which growers are fixing their unsold stocks.

Bulk of the business in Sindh and Punjab varieties was finalized at Rs2,300 and Rs2,425 per maund depending on the quality and fibre strength of the lint.

The expanding ready mill intake by some of the leading groups of spinners reflects that they are in a bit hurry as they are lifting lint mostly at the ginner options apparently fearing pressure on future supplies, market sources said.

“Conflicting reports about the size of the crop continue to haunt spinners as no one among them is inclined to take even a calculated risk about future consumption needs”, says a leading cotton analyst, adding “behind the scene, the grower is setting the price trend”.

Phutti prices in Sindh are quoted between Rs1,050 to Rs1,100 in Sindh and Rs1,125 in the Punjab cotton belt, leaving a little profit margin for the ginners.

But ginners claim that they satisfied with the conversion charges and a modest profit as they are not inclined to hold long positions in view of the conflicting reports about the size of the crop, they said.

Spinners and mills appear to be a bit shaky about the future outlook of supplies and until they are sure about the production figures they are not inclined to sit on the sidelines for obvious reasons, they said.

However, unlike the previous seasons there are no violent price movements and most of the increases are orderly and did not affect spinners’ future price outlook, brokers said.

Spinners are, however, a bit worried over the rising world prices in the backdrop of higher New York cotton futures as expensive import could upset their parity levels in case the local crop is short, they said.

Ready off-take was on the higher side totalling about 12,000 bales, bulk of which went to the credit of Punjab variety.

Official spot rates were raised to Rs2,350 per maund as growers are holding on to phutti stocks to push prices further higher.