KARACHI, July 31: Cotton prices soared to a new high of Rs4,300 per maund on Thursday as spinners and mills were not inclined to take even a technical breather haunted by market talk of another short crop.

“A crisis-like situation is developing on the supply and demand front in cotton trade,” brokers said. “It appears to be genuine in the backdrop of reports of pest attack in the major cotton growing areas”.

The attack of mealy bug on the standing crop at this early stage of the current season is said to be the chief factor behind the panic-buying by the mills and spinners, market sources said.

The fact that spinners are willing buyers for any lot well above Rs4,200 per maund reflects that ginners may not be alone behind the persistent price flare-up mills have their share also in it, they added.

They said the price flare-up was based on the surging phutti prices which were quoted at Rs2,200 per 40kg plus, and some of the progressive growers were holding onto their newly picked up stocks eyeing further increase in prices, they said.

“The unabated rise in prices is attributed to a virtual war among the leading spinners and mills whose hands are full with export orders,” said a floor broker. “They may have good reasons behind their scramble for each lot irrespective of quality considerations”.

But some others said the market was progressively slipping into the hands of the grower who alone knew the exact position of the crop and the extent of the damage caused to it.

Official spot rates were quoted further higher by Rs75 per maund for the third consecutive session at Rs4,050 per maund in line with those at which final transactions are made in the ready section.

New York cotton futures on the other hand suffered fresh fractional decline of 0.26 and 0.16 cents per lb for both the ruling October and the distant December contracts at 71.40 and 74.32 cents, respectively.

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

PUNJAB VARIETY: 200 bales, Garma Raja at Rs4,300, 200 bales, each Mian Channu, Burewala, Qabula, Pakpattan at Rs4,200, 300 bales, Bahawalnagar at Rs4,200, 200 bales, Arifwala at Rs4,250, 100 bales, each Kassowal, Chichawatni, Bahawalpur and Tandlianawala at Rs4,200.