KARACHI, June 17: The cotton market on Tuesday maintained a bullish outlook amid active trading as spinners continued to lift all the lots being offered by the ginners.

Analysts said the fresh limit-gains in the New York cotton futures on reports of damage to standing US new crop, which could cause global shortage of the commodity, is expected to have sympathetic bullish impact on prices elsewhere.

After having fallen to around 66 cents per lb, a couple of weeks earlier, the New York cotton futures on Monday rose by limit-gains of 2.99 and 2.79 cents per lb at 74.62 and 78.37 cents for both the ruling July and the forward October settlements, respectively.

“Both the contracts seem to be again heading towards their last season’s pre-reaction level of 96 cents per lb,” they said adding: “If the supply situation was not improved by higher crops in some other major producing countries, including Pakistan, it may be another difficult year for the textile sector.” Floor brokers said a large number of sale offers this time came from the upper Sindh ginners, well known for fine quality, and contamination-free lint comparable to their southern Punjab stuff.

Most of the deals finalised on Tuesday for ready delivery were in line with the quality of lint, highest and lowest rates being at Rs4,000 and Rs3,675 per maund, they said.

The prevailing local selling prices are rising in sympathy with the world rates around Rs4,000 or slightly above and only the normal size of the just sown new cotton crop could stabilise them around the current level, some others said.

Official spot rates were firmly held at the last level of Rs3,800 per maund but in the ready section most of the deals were done in line with the quality of lint.

The following are some of the retail deals, which gone through on Tuesday: 400 bales, Mehrabpur at Rs4,000, 600 bales, Ghotki at Rs3,800, 200 bales, Mirpur Mathelo at Rs3,740, 200 bales, Saleh Pat at Rs3,700 and 800 bales, Dharki at Rs3,675.