KARACHI, July 22: Panic buying continued on the cotton market on Tuesday for the second consecutive session as mills and spinners were not inclined to take even a technical breather to have an overview of the developing situation on the supply front.

Most of the deals in the ready section were finalised around Rs4,100 per maund amid a loud whispering that the cotton is heading to establish new records both on the price and production fronts, said a floor broker.

With New York cotton futures ruling around 70 cents per lb or slightly below this level for the last couple of sessions, the local mill buying should be based on the world parity level rather than well above it as spinners have to sell their byproduct in a highly competitive market the world over, said cotton analyst.

“The current price war between the spinners and the mills to grab the floating stock is unfortunate,” market sources said, adding: “never before during the previous seasons they are so panicked just on rumours about the pest attack”.

Reports of the attack of mealybug are pouring in here but it is, ginners said, manageable at the preliminary stage and growers are said to be well over it.

They said no one could dispute the fact that the cotton is a very sensitive crop and needs extra care and extensive investment till the picking stage and any thing could happen in between.

“It is also prone to speculative rumours circulated by the vested interests about a short crop or pest attack and it is for the spinners to judge the situation before opting for panic buying,” they added.

Official spot rate for average quality lint was also revised upward by Rs100 per maund, the total during the last three sessions being Rs200.

The following are some of the deals reported by the brokers late on Tuesday evening: 1,000 bales, Bruewala, 200 each Kabirwala, Hasilpur, Arifwala, Chichawatni, and Depalpur, 400 and 600 bales, Mian Channu and Sahiwal at Rs4,100, 600 bales, Khanewal at Rs4,050 to Rs4,100 and 400 bales, Mangi Bungalow at Rs4,090 to Rs4,100.