KARACHI, Feb 20: Trading on the cotton market on Wednesday resumed on a firm note as ginners raised their asking prices after the election euphoria faded into the business demand.

Although spinners and mills were reluctant to oblige ginners at the higher asking prices of around Rs3,300 per maund for the fine types, market sources said that the pent-up demand for the last about a week owing to electioneering may force some of the needy mills to pay higher price for the lint.

They said higher New York cotton future prices might not have an immediate sympathetic positive impact on the local prices as spinners could wait for a couple of weeks as consignments from India were steadily arriving here and the spinners were not likely opt to buy at the higher levels.

The New York cotton futures for the ruling May contract on Wednesday were quoted higher by 1.40 cents per lb at 71.80, which points to higher price outlook in the coming weeks for the importing countries, they added.

But some ginners, notably from the Punjab cotton belt, where bulk of the unsold stocks of lint are lying, may remain cautious sellers and await formation of the coalition government in Punjab led by the Pakistan Muslim League (Nawaz).

They said the PML-N victory in the central Punjab had altogether changed the future cotton outlook despite the fact that southern Punjab ginners, the holders of bulk of the quality lint, held the key in setting price trend.

The next couple of sessions, possibly before the formation of the governments at the centre and the provincial levels, could well prove vital for the future cotton trade, they added.

Official spot rates were, therefore, again firmly held at the last level of Rs3,100 per maund for an average quality lint.

The ready off-take was light totaling about 2,000 bales including 800 bales of fine quality from a Rahim Yar Khan ginnery at Rs3,300 per maund.