KARACHI, July 24: Trading activity on the cotton market on Thursday remained brisk as spinners and mills, haunted by the perception of another short crop, were not inclined to take a technical breather and lifted all the lots offered by the ginners at record high prices.

The interesting feature was that both the lower Sindh and the central Punjab lint were sold at uniform record rate of Rs4,200 per maund. In normal market conditions, the latter is sold at a premium on quality basis, floor brokers said.

“The fears of a short crop keep them on their toes to grab the floating stock at higher asking prices,” they added.

Last season spinners and mills had to suffer heavy losses as the crop size was not officially known to them till December and they had to make imports at much higher rates on emergency basis to cover their forward sales.

“Prices of lint could rise to any highs owing to short crop in the major cotton producing countries,” said a leading spinner. “No one is inclined to shop on the world market at much higher rates when the stuff is locally available.”

“If we are buying lint at much higher rates, the benefit goes to the grower who has increased phutti prices to a record above Rs2,000 per 40kg,” he said.

“For the second season in a row, the cotton trade is heading for another crisis which will affect all stakeholders one or in the other form,” observed a leading cotton analyst.

“The government should make arrangements for provision of certified seeds which is said to be the chief cause of successive crop failures,” he added.

Official spot rates were again quoted higher by Rs50 per maund for an average quality, while in the ready section bulk of the business was done at record high Rs4,200 per maund.

New York cotton futures also reacted to reports of global short production and were quoted higher by 1.40 and 1.36 cents per lb for both the new comer October and the forward December settlements at 70.16 and 72.92 cents respectively.

The following notable deals were finalised in the ready section on Thursday evening:

SINDH TYPE: 400, 200 and 100 bales, Sanghar, Hyderabad and Tando Adam at Rs4,200, 1,200 bales, 600 each, 1,000, 400 each, Burewala, Mian Channu, Arifwala and Khanewal, Chichawatni, Sahiwal and Kabirwala and 200, Gojra, Kassowal, Haroonabad and Hasilpur, respectively, at Rs4,200 per maund and 200 bales, Garha More at Rs4,190.