KARACHI, Feb 22: Cotton prices on Friday soared to new seasonal peak level of Rs3,400 per maund followed by panic buying by the mills and spinners amid reports of delay in imported consignments from India.

An idea of panic mill buying may well be had from the fact that a leading group of spinners tried to corner the entire unsold stock of fine lint lying with the ginners at any prices.

“The quality lint is in short supply, spinners and mills could go to any length to grab it irrespective of price tag,” cotton analyst Naseem Usman said.

He said prices could rise further higher during the coming sessions as price war among the leading textile groups has already started and the chief beneficiary could be the ginners.

Two big deals of fine lint totaling about 9,000 bales were finalised at Rs3,400 per maund and talks for more big lots were said to be in the final stages.

Spinners said apart from delay in arrival of consignments from India, the other factor, which triggered panic buying, was a price flare-up in the New York cotton futures followed by reports of speculative buying by the end-product users.

New York cotton futures on Friday finished with limit gain of 3 and 2.69 cents per lb for both the maturing March and the ruling May settlement at 73.23 and 74.96 cents per lb, respectively.

“The world textile trade is heading for a major crisis as Pakistan’s short crop has triggered speculative buying elsewhere, making exports more expensive,” said a leading spinner.

Official spot rates were also revised upward by Rs50 per maund at Rs3,150 for an average quality lint but fine types were traded at much higher rates.

About 15,000 bales changed hands in the ready section as under: 6,500 bales from Rahim Yar Khan and 5,000 bales, from Jalalpur ginneries at Rs3,400, 1,000 bales, upper Sindh at Rs3,200 to Rs3,250 and 200 bales, Liaquatpur at 3,185.