KARACHI, June 7: Firm trend was again witnessed on the cotton market on Saturday as prices were revised upward by Rs50 per maund to match with rates at which physical business is being transacted.

But some analysts claim the revision came in the backdrop of limit-gains on the New York cotton futures followed by reports of speculative squeeze aided in part by the revival of foreign demand.

The New York cotton futures, which has a relevance to the local price structure, has been under pressure for the last couple of weeks and stayed well blow 70 cents per lb benchmark around 66 cents, they said.

However, the current upward revision by the official rate committee was carried out in line with the prevailing rates in the open market or reports of deals between the spinners and the ginners, they said.

“The current price flare-up to Rs4,000 per maund for fine lots appears to be competitive with rates at which some of the leading spinners are buying for the ready delivery for the last couple of weeks,” floor brokers said, adding: “The revision appears to be a formality.”

The other aiding factor, which is keeping prices on the higher side, is the falling unsold stocks of lint with the ginners which, according to market sources, have fallen to a meager total of below 100,000 bales.

Although spinners and mills have imported well over 3 million bales of lint from various sources, notably from India, and may not have fresh supplies, the current fall in New York cotton futures has made imports competitive for those who still need more supplies, market sources said.

Meanwhile, reports reaching here from the cotton belt indicate that sowing of the new crop is expected to be completed around the deadline of June 15 but at a much higher cost owing to shortage of canal water and higher cost of inputs, market sources said. New York cotton futures on Friday were quoted higher by 1.87 and 2.22 cents per lb for both the ruling July and the forward October contracts at 66.52 and 71.52 cents, respectively.The local official spot rates were also raised by Rs50 per maund at Rs3,750 per maund.

Owing to higher asking prices by the ginners at around Rs4,000, ready off-take was light as only 400 bales, from Gilanwali ginnery, changed hands at Rs4,000 per maund.