KARACHI, Sept 22: Trading on the cotton market on Monday resumed on a higher note as pent-up mill demand came in a big way and lifted prices to new seasonal peak levels.

Some of the deals were finalized as higher as Rs2,525 for the central Sindh lint, while Punjab type was again traded at a discount apparently for quality factors, dealers said.

In sympathy with persistent increase in lint prices, phutti rates are also showing corresponding increase. According to reports reaching here growers were getting a fair price of Rs1,025 to Rs1,050 per 40 kg but it is satisfying to note there was no reports of holding back of stocks by the growers. The inflow of phutti into the ginneries was normal throughout the cotton belt.

“Conflicting reports about the size of crop followed by pest attack in some of the areas continue to inspire panic-buying both from the spinners and mills and in turn increase in prices”, they said.

They said as spinners have their own crop monitoring system they might have fair idea of an expected size of the new crop and the extent of the reported damage.

“They are not fools to push prices higher almost each day”, says a leading broker commenting on the current price flare-up “spinners and mills may have a fair crop idea and the future price perceptions”.

The big-lot business reported in the central Sindh variety reflects the stuff from the central Punjab may not be that attractive for them as far as the quality premiums are concerned and that is why they are willing to pay more for the short staple lint.

The other aiding factor, which did not allow spinners to sit on the sidelines are reports of higher demand for the local cotton yarn on the foreign markets and competitive export prices, brokers said.

“Lint prices are expected to rise further from the current level as spinners are out to grab the floating stock to cover their forward positions against foreign sales”, they said.

It was in this background that official spot rates were further raised by Rs15 per maund to Rs2,440.

Ready offtake was on the higher side as spinners lifted all the lots offered for sales irrespective of the asking prices. As a result, till late in the evening over 10,000 bales changed hands, the following being some of the notable deals:

SINDH VARIETY: 1,000 bales, Shahdadpur at Rs2,485 to Rs2,520, 1,000 bales, Tando Adam at Rs2,450 to Rs2,500, 200 bales, Mirpurkhas at Rs2,485, 200 bales, Shahpur Chakkar at Rs2,485, 400 bales, Pithoro at Rs2,525, 400 bales, Nawabshah at the same rate and 200 bales, Sarari at Rs2,525.