KARACHI, Feb 9: Cotton prices on Monday stayed stable around the weekend level but in physical trading some of the fine lots were traded as higher as Rs3,500 per maund amid an actively traded opening session of the week, floor brokers said.

They said the fact that average lint prices had soared to Rs3,300 per maund reflect that the supply-based increase may not be contained in the weeks to come.

All the fine lots both from the upper Sindh and the southern Punjab ginneries are being traded well above Rs3,400 per maund for the last couple of sessions but a big deal of 2,000 bales was finalised at Rs3,500 for the first time after several months.

It was interesting to note, however, that spinners and mills are not inclined to take even a technical breather to have an overview of their stocks but are out to cover their forward positions against foreign sales, some others said.

Ginners said there appears to be a big positive change on the export front as was indicated by active mill buying irrespective of price increases each week, short crop may be one of the reasons.

But some others said despite recession affecting the major textile consumers of cotton and cotton-based products, reports of new year export orders had sent a wave of optimism in the local industry.

However, persistent increase in world prices did worry spinners and mills as they would need more imports of lint from various countries amid fears that any fresh price flare-up will erode their competitiveness on the export front, they added.

Official spot rates were firmly held at the weekend level of Rs3,400 per maund but in the ready section most of the deals were quality-based.

Mill ready off-take was on the higher side as till late in the evening about 20,000 bales, changed hands as under:

SINDH TYPE: 2,400 bales, Kumb at Rs3,300, and 400 bales, Shahdadpur at Rs3,200.

PUNJAB VARIETY: 2,683 bales, Kabirwala and 200 bales, Burewala at Rs3,400, 600 bales, Rajanpur at Rs3,475, 1,400 bales, Sadiqabad and 600 bales, Alipur at Rs3,300, 1,000 bales, Rajanpur at Rs3,225, 2,200 bales, Rahimyar Khan at 3,450 and 2,000 bales, Mianwali at 3,500.