KARACHI, April 8: Prices on the cotton market remained stable around the previous level on Tuesday but some fine lots were traded higher, touching the season’s peak around Rs3,550 per maund.

Floor brokers said the local market is expected to further heat up during the coming session, in sympathy with a sharp rebound staged by the New York cotton futures, which on Tuesday soared to 72.71 and 76.30 cents per lb for both the ruling May and the forward July contracts, respectively, up 1.94 and 1.95 cents per lb.

They said the pick up in mill buying reflects this phenomenon amid fears that prices could soar here also in sympathy with the world markets.

The notable feature was that some of the exporters sold part of their stocks purchased early in the season to mills at much higher rates, floor brokers said.

“It is more profitable to sell to the local buyers than to foreigners at the current rates, claims an exporter, adding “some others may follow the suit to save themselves from the changing mood of foreign buyers in a volatile world cotton market.”

According to official sources, a local exporter sold 700 bales of fine lots to a spinner at Rs3,500 to Rs3,550 per maund, which, he claimed, is a competitive rate, slightly above the prevailing international prices.

There is a loud whispering in the market that some other exporters may follow them and indulge in local selling, deferring their forward shipments to the new crop against their forward deals for about 0.191 million bales, signed with foreign buyers, said a local broker. Official spot rates were, therefore, again held unchanged at Rs3,300 per maund for an average quality lint.

Ready off-take was modest, totalling about 8,000 bales as under: 3,000 bales, upper Sindh at Rs3,380 to Rs3,400; 1,000 bales, Sadiqabad at Rs3,400 and 2,000 bales, Rahim Yar Khan at Rs3,400.