KARACHI, Nov 20: Trading on the cotton market on Monday resumed on a firm note as ginners were not inclined to lower their asking prices despite a large unsold stock of well over 2m bales lying in their godowns.

In physical trading, fine lots from southern Punjab ginneries were sold at around Rs2485 per maund, while the Sindh variety was also traded higher by Rs25 per maund as compared to previous week’s selling rates.

Floor brokers said ginners were sitting pretty comfortable on large unsold stocks on the perception that spinners and mills would lift them on their asking prices in the backdrop of a short crop.

Although large amounts are tied to the unsold stocks, ginners are still hoping better prices as the season progresses, probably early next year there could be a pressure on supplies leading to a price flare-up, some ginners say.

However, spinners and mills covered their forward positions after average daily buying of about 50,000 bales amid fears of a price flare-up, they said.

According to phutti arrivals for the fortnight ending Nov 15, 6.808m bales equivalent phutti arrived in the ginneries, 1.481m bales from Sindh and 5.328m bales from Punjab, Sindh arrivals being short as compared to the last season.

Out of the total ginned lint, spinners purchased 4.674m bales, leaving an unsold stock of 2.079 bales with the ginneries worth about Rs25 billion.

As a result official spot rates were firmly held at the last levels but most of the deals in the ready section were done well above them.

Ready business was maintained on the higher side totalling about 30,000 bales, the following being some of the notable deals:

SINDH TYPE: 1,000 bales, Dadu at Rs2,425; 1,000 bales, Khairpur at Rs2,400; 1,000 bales, Nawabshah and 400 bales, Sanghar at Rs2,350.