KARACHI, Oct 22: Brisk trading was witnessed on the cotton market on Monday as spinners and mills were not inclined to take even a technical breather and made fresh extensive covering purchases amid fears of an imminent price flare-up.

An idea of panic mill buying may well be had from the fact that purchased about 20,000 bales, mostly from the Punjab ginneries, which is claimed to be the largest-single session tally during the current season, brokers said.

“The quality war among the leading spinners appears to have started as leading among them are out to corner all the available stock of fine lots against their forward sales of higher counts of yarn”, they add.

The major thrust on quality lots, notably from the Punjab ginners reflects that spinners have changed their buying strategy and are out to grab the floating stock of fine lots irrespective of the price tag.

That is perhaps why premium lots were sold as higher as Rs.1,750.00 per maund, indicating that spinners are willing to go beyond this level.

“I don’t think prices are heading for the pre-reaction level of Rs.2,000.00 per maund in the near-term”, claims a leading dealer, adding “spinners may not go beyond their export parity levels, which are quite bearish based on the prevailing international prices”.

Market sources said if the current mill buying of cotton was any indication the loud whispering about the decline in textile exports may not prove correct as spinners generally cover positions against their forward sales.

However, it was a major change in the future outlook of the market but whether or not the recent price gains are passed on to the grower could well prove a major factor in improving the cotton economy, they add.

Meanwhile, Trading Corporation of Pakistan has purchased another 15,100 bales at Rs.1,855.00 per maund on Oct 19 and 20 according to export packing specifications, its total purchases so far may have touched the high mark of 0.200 million bales during the current season.

Official spot rates for the local lint were upped by another Rs.35.00 per maund, but in physical trading most of the deals were done well above this rate.

A record business of about 20,000 bales was reported by the Karachi Brokers Committee, the following being some of the notable deals:

SINDH TYPE: 1,500 bales of Nawabshah at Rs.1,700 to Rs.1,725.00, 1,200 bales, Sakrand also at the same rate, 400 bales, Moro at Rs.1,750.00 and 200 bales of Kot Lalu at Rs.1,725.00.