KARACHI, Nov 20: Cotton market on Tuesday continued to emit bullish sparks as rumours of a short crop did not allow spinners to sit idle for a moment to have an overview of the developing situation.

Later, in the evening a big deal of 2,500 bales from a Rahimyar Khan ginnery was sold at season’s so far highest rate of Rs.2,225.00 per maund, signalling a price war among the spinners to have premium lots irrespective of asking prices.

“The market is getting terribly tight each session”, says a leading cotton broker Naseem Usman, analysing the future price outlook uses this technical word “tight” to explain that the supplies are short in the face of increasing demand.

How far the market may remain tight is not clear but the general perception is that fears of a short crop together with an expected pick up in export demand of textiles, could push prices further higher in the coming months, some other leading cotton brokers say.

It was perhaps in this background that there were buyers for the Punjab variety around Rs.2,200.00 per maund but not many sellers, dealers said.

“Everybody associated with the cotton trade,notably ginners and spinners are at their toes as growers appear to be in the driving seat and setting the direction for the market to follow”, some leading cotton brokers claim.

The higher selling prices of phutti could have a bullish impact on the entire cotton trade and spinners may be on the receiving as they have no alternatives to save the situation, they add.

Ginners on the other hand have the option not to join the race and purchase only those lots of phutti, which conform to the prevailing international prices, they say.

Spinners say the demand for textiles is increasing but the prices of lint cotton, and other inputs, including overheads make the local end-product a bit expensive on the export markets.

The interesting feature is that the spinners have already imported about 0.3m bales from various sources since Sept 1, after the New York cotton future fell below the 30-cent per lb level last month and are after each lot of the local stuff, signalling larger monthly intake of lint, dealers said.

Official spot rates were further raised by Rs.50.00 per maund to Rs.2,125.00 per maund, although in the ready section fine types were sold at Rs.2,200.00 per maund.

Ready offtake was active totalling about 10,000 bales, the following being some of the notable deals:

SINDH TYPE: 500 bales, K-68 of Dharki at Rs.2,200.00, 500 bales, Gothki at Rs.2,200.00 and 500 bales of Mirpur Mathelo at Rs.2,200.00.