KARACHI, Nov 30: Cotton market on Friday maintained a firm trend as spinners and mills continued to make panic buying amid fears of a short crop and tight ready positions.

Most of the deals in the lower and central Sindh were done between Rs1,850 and 1,900, depending on quality, while upper Sindh K-68 was sold in line with the southern Punjab MNH-93, both billed as fine types, having medium staple length. Both fetched highest price of Rs2,125 and the lowest around 2,000 per maund without sales tax.

It appears to be a repeat performance as spinners made an extensive buying for the second session in a row as fears of an imminent price flare-up haunted them, brokers said.

But some others said it is the quality war between the big textile groups who wanted to corner the prime lots at the prevailing rates.

The general perception is that prices of local lint could tend further higher backed by the objective world price outlook and doubts about the crop targets.

The persistent rise in New York cotton futures is reflective of the fact that the world demand is picking up as the end of the Afghan war may not far off and fears about the shipment problems are progressively fading.

“What seems to have worried spinners and mills was the reports that the Trading Corporation of Pakistan has received a highest bid of 36.06 cents per lb against its recent new crop tender for 10,000 bales”, dealers said.

Local prices have to edge to that level or slight above them alone on freight account and that is perhaps spinners are back in the market and making panic buying for the second session in a row.

Meanwhile, reports coming from the Punjab cotton belt show that growers are holding back their phutti since prices have declined to Rs900 to 925 per 40 kg from the recent highs of Rs1,000.

Arrivals in the ginneries are gradually drying up as growers are holding on to their stocks of phutti to push prices again higher.

Ready offtake was active as till late in the evening about 15,000 bales changed hands, the following being some of the notable deals.

SINDH VARIETY: 200 bales of Tando Adam at Rs1,800, 500 bales, Sanghar at Rs1,825, 500 bales, Shahdadpur at Rs1,825, 1,000 bales each, Gothki and Mirpur Mathelo at Rs2,075 to Rs2,100 and 500 bales of Oboro at Rs2,075 to Rs2,100.