November 26, 2006	Sunday	Ziqa'ad 4, 1427

KARACHI, Nov 25: Cotton prices on Saturday rose further higher by Rs25 per maund as spinners and mills continued to make panic buying amid fears of a short crop.

Phutti (seed-cotton) prices also rose to Rs1,300-1,325 per 40 kg which in turn pushed up lint prices, brokers said.

An idea of panic among the spinners may well be had from the fact that leading spinner groups indulged in big-lot business ranging from 3,000 to 5,000 bales at a uniform rate of Rs2,525 per maund.

Another 40,000 bales, mostly of fine quality lint changed hands, although some of the brokers put the figure at much higher level.

“I think lint prices are inching up to hit the seasonal highs of Rs2,600 per maund,” a leading broker fears, adding “it is not clear from the objective conditions but spinners may have some valid reasons behind the prevailing panic”.

Market sources said talk of about a million bales import from India and some other countries to make up possible crop shortfall failed to check the price flare-up.

“The price war is said to be at its peak as leading groups are out to grab the floating stocks irrespective of the rising prices as their hand are full with export orders,” they said, adding “their weaker links are at the receiving end and could suffer fresh losses owing to rising overheads”.

Official spot rates were again revised upward to Rs2,450 per maund from the previous Rs2,425 but they were still far below the ready prices at which business was being transacted.

The following were some of the notable deals, which gone through in the ready section.

SINDH VARIETY: 1,000 bales, Moro and 2,000 bales Khairpur at Rs2,450-2,475, 1,000 bales, Sanghar at 2,350.00,1,000 bales, Shahdadpur at Rs2,400-2,450, 1,000 bales, Tando Adam at Rs2,350-2,375, 1,000 bales, Nawabshah at Rs2,400-2,425 and 2,000 bales, upper Sindh at Rs2,500-2,525.

PUNJAB TYPE: 5,000 bales, Bahawalpur, 4,000 bales, Lodhran, 3,000 bales, each Muhammadpur Dewan, Bahawalpur and Rajanpur at Rs2,525, 2,000 bales each, Shjuabad, Faisalabad and D.G. Khan at Rs2,525, 1,000 bales, each Multan, Rahimyar Khan and Sadiqabad also at Rs2,525.