KARACHI, March 20: Cotton prices on Thursday rose to a record high level as spinners and mills indulged in panic-buying fearing interruption in physical shipments from the overseas sources because of US attack on Iraq.

The rate of Rs2,700 per maund is billed as highest for the last couple of years and if the Gulf war extends beyond the initial calculations of the invaders, prices could set all-time peak levels during the next couple of weeks, brokers said.

Some big-lots of fine quality from the southern Punjab ginneries were sold as higher as Rs2,700 per maund excluding 15 per cent sales tax, which works out to be well over Rs3,200 per maund.

Sea-borne trade might be safe as there are alternative routes to facilitate foreign trade but spinners are not inclined to take even a calculated risk about their consumption needs and resorted to panic-buying.

What worries most of the spinners is unclear picture of the local supplies in the absence of fresh arrival figures as they could not precisely evaluate the possible shortfall, brokers said.

The other worry is that the foreign lint could be more expensive partly because of higher asking prices and partly to increase in freight rates and fears of war risk surcharge, they said.

“I also foresee a default against previously signed import deals from foreign sources,” fears a leading spinner who had made forward contracts for a substantial quantity from the overseas sellers adding “in war situations such things do happen.”

Some of the spinners also fear interruptions to consignments already on the highseas as war ships are monitoring the shipment movements, a normal check during the war.

There was, however, no change in the official spot rates but in physical trading prices are heading to set new all-time high record. New York cotton futures on the other hand suffered mild reaction of 0.44 and 0.13 cents per lb at 59.09 and 59.80 for both the ruling May and the distant July settlements respectively.

Ready business was on the higher side as till late in the evening about 20,000 bales, all from the Punjab ginneries changed hands, the following being some of the notable deals: 3,400 bales, Khanpur and Bagho Bahar at Rs2,650, 1,200 bales, Rahimyar Khan also at Rs2,650, 1,000 bales, Mailsi at Rs2,650 to Rs2,675, 5,000 bales each Ahmedpur East and Bahawalpur at Rs2,700, 200 bales, Vehari at Rs2,625 and 400 bales at Rs2,675 and 800 bales, Bahawalnagar at Rs2,550.