KARACHI, Dec 26: Trading resumed on the cotton market on Wednesday after Tuesday’s closure on a bullish note as pent up demand figured prominently, pushing up prices by Rs50per maund.

Later in the evening, some of the fine lots were traded as higher as Rs3,150 per maund, but the average rate on which about 20,000 bales changed hands was billed at Rs3,125, floor brokers said.

Leading spinners and mills have been keeping to the sidelines owing to higher freight rates being quoted by the cargo haulers as they were busy in transporting sacrificial animals to the city and back, they said.

But as the delivery position eased a bit after freight rates fell to normal average rate, spinners and mills opted for ready supplies and in the process ginners raised their asking prices, they added.

“Despite reports of higher import contracts, spinners have still to go a long way to cover their forward positions,” said a leading cotton analyst, adding “as lint is a bit expensive on the world markets, they opted for local stuff for prompt delivery.”

Indications are that the market is heading again for a price war between the spinners and mills as each group will try to corner the floating stock of lint leading to a fresh price flare-up, he added.

A general view based on the supply demand is that the lint may not be that cheaper in the coming weeks as the total crop is far below the annual demand of the local textile industry, market sources said.

However, increase in prices will be progressive and in line with the daily intake of the industry. But if the big ones tried to go beyond the normal market off-take, prices could rise sharply higher, they added.

Official spot rates were quoted higher by Rs50 per maund at Rs3,025 for an average quality lint, but fine types were traded on much higher prices.

The following are some of the notable deals on Wednesday evening:

SINDH TYPE: 2,000 bales, Khairpur at Rs3,125 and 800 bales, Saleh Pat at 3,150.