KARACHI, June 28: Cotton prices on Thursday were quoted higher by Rs25 per maund owing to interruption in supplies from the upcountry trading centres because of the current rain spell.

But in the ready section a big deal of 1,200 bales from a southern Punjab ginnery was finalised at the season’s highest rate of Rs2,800, floor brokers said.

“The lint is in short supply on ready basis,” they said, adding “ginners may further raise their asking prices as unsold stocks with them have fallen to about 40,000 bales”.

Apart from short supply of the local lint, fears of damage to standing crop at the picking stage because of the current monsoon rain spell in the entire lower Sindh cotton belt was another aiding factor, they added.

Ginners said arrivals of phutti into their ginneries had almost dried up as picking operations of phutti might not be resumed before another two weeks and that could push prices further higher in the coming sessions, market sources said.

Leading spinners said higher world lint prices in the backdrop of speculative increase in the New York cotton futures had made foreign stuff more expensive.

“The local situation appears to be heading for a big crisis based on supply and demand factors as the recent rains have changed the entire price outlook,” said a leading spinner.

He said some of the leading spinners and mills had made modest forward buying at the higher rates in the hope that more deals would be signed after prices fall from the current levels.

But the New York cotton futures were again heading towards the 60-cent per lb benchmark, making foreign lint more expensive.

New York cotton futures were quoted higher by 0.85 and 0.14 cents per lb at 56.85 cents for the maturing July and 59.80 cents for the ruling October contract respectively.

Local official spot rates were revised upward by Rs25 at Rs2,625 per maund. In the ready section 1,200 bales from a Shujabad ginnery changed hands at Rs2,800 per maund.