KARACHI, Aug 8: Cotton prices on Wednesday soared to record high of Rs3,400 per maund as leading spinners purchased some lots at the higher levels from the central Sindh cotton belt apparently against their forward sales of textiles.

Incidentally, this time the all-time high record was set by the Sindh lint, but a leading cotton consultant Naseem Usman predicts prices may further rise as perception of a lower crop continue to haunt both spinners and mills. Other leading spinners lifted modest lots between Rs3,275 to Rs3,375 depending on quality, he added.

“The crop may be short and below the target of 12.5m bales but not that short as being feared by the mills, said a leading ginner, adding “speculative forces seem to have made it look so”.

Spinners and mills are worried on the supply front and fears their export target for the textiles and yarn may not be honoured and they may have to seek extension for the physical shipment deadline, said a leading spinner.

They fear the persistent fall in New York cotton futures to 60 cents per lb could further accentuate the supply situation as foreign producers of textile may get lint at a competitive price as compared to local producers, he added.

All eyes are now focused on the upper Sindh and southern Punjab cotton, which is expected to improve the supply position and in turn could drag prices downward, market sources said.

Official spot rates were again revised upward by Rs50 at Rs3,100 per maund for an average quality but most of the deals were done around Rs250 per maund higher.

New York cotton futures fell further by 1.35 and 1.09 cents at 60.60 and 62.98 cents per lb for both the ruling October and the distant December settlements respectively.

Mill ready offtake was on the higher side as some of the spinners covered their forward sales fearing further increase in prices. The following were some of the notable deals.

SINDH TYPE: 200 bales each, Tando Adam and Mirpurkhas at Rs3,400, 1,400 bales and 200 bales, Shahdadpur and Sanghar at Rs3,350, 800 bales, Mirpurkhas at Rs3,325 to Rs3,350 and 200 bales, Tando Adam at Rs3,370 to Rs3,375.