KARACHI, Jan 15: Cotton market on Thursday consolidated overnight gains as follow-up support again figured prominently on the upper Sindh and southern Punjab fine lots followed by reports of below revised target crop, analysts said.

But some brokerage houses reported hoarding of stocks of fine lots amid predictions of an imminent price flare-up based on speculative mill buying and the general perception of a short crop.

“Lint prices may not touch the early season level of Rs4,000 plus per maund, they are certainly heading for new mid-season higher levels,” said an optimistic ginner.

According to him a sizable stock of fine lint has already been lifted by the TCP (half a million bales plus) and some leading private sector exporters, quality lots may now be very few even with the leading ginners.

The private sector exporters had so far registered export contracts with Trade Development Authority of Pakistan for 0.265m bales, up to Jan 7, 2009 and have physically shipped 0.233m bales by the same date, according to official figures.

The official figures released by the agencies linked to cotton trade show that the current price war may further intensified during the next couple of weeks and the ginners would be the chief beneficiary, market sources said.

Moreover, ginners also have an upper hand as sellers as imports of lint is not that easy owing to foreign exchange problems and the cotton users have largely to rely on the local stuff, leading to fresh increase in prices.

The next few weeks could be very crucial for the direction of the market as by that time supply side will be fully clear after the Pakistan Cotton Ginners Association (PCGA) released its arrival figures of phutti for the fortnight ending Jan 31, 2009.

Official spot rates were firmly held at the last level of Rs3,275 per maund but on the other hand New York cotton futures eased further modestly by 0.23 and 0.19 cents per lb at 46 and 46.90 cents, respectively.

The following are some of the deals, which were reported in the ready section on Thursday evening:

SINDH TYPE: 1,000 bales, Shahdadpur at Rs3,150 to 3,175, 400 bales, Shahdadpur and 600 bales, Sanghar at 3,150, 600 bales, and 800 bales, upper Sindh at Rs3,300 to 3,350.

PUNJAB VARIETY: 3,000 bales, Khanewal at Rs3,250 to 3,400, 2,200 bales, Mian Channu at Rs3,400, 2,200 bales, Ahmedpur East at Rs3,250 to 3,400, 1,200 bales, Mongi Bungalow and 600 bales, Rahimyar Khan at 3,200, 800 bales, Bahawalpur at Rs3,300, 800 and 400 bales, Fort Abbas and Jalalpur at Rs3,250.