KARACHI, Sept 25: Firm conditions prevailed on the cotton market on Thursday as prices rose further higher amid a briskly traded session in the backdrop of conflicting reports about the damage to the standing crop.

About 20,000 bales changed hands well above Rs2,550 and some deals in the Punjab variety were finalized at Rs2,600, indicating the current price flare-up will continue in the coming sessions too.

However, there were no reports of holding back of lint stocks by the ginners as no one among them is inclined to hold long positions owing to tricky cotton business, dealers said.

Larger offtake on the one hand reflects strong spinner presence on the market and an obliging ginner mood indicating that no one among them is in mood to take even a calculated risks despite analysts predictions of further increase in prices by the end of the current year.

“It is too early to say something about the size of the local crop despite reports of pest attack in some of the areas, the world production is certainly short as compared to consumption and chances of price flare-up are there,” brokers said.

New York cotton futures are heading toward the 70-cent mark after about two decades and no one could deny its possible bullish impact on prices in the other countries including Pakistan.

Apart from reports of a short crop, the other aiding factor is fuelling price flare-up here is higher world rates, which has made imports uncompetitive for the local spinners, dealers said.

New York cotton futures on Wednesday quoted around 65.20 and 66.42 cents per lb for both the ruling October and the distant December settlements respectively, billed as 15-year peak levels.

It was in this background that official spot rates were further raised by Rs25 per maund at Rs2,475, although in physical trading most of the deals were finalized at much higher prices.

Ready offtake was brisk as till late in the evening about 20,000 bales, changed hands, the following being some of the notable deals:

SINDH VARIETY: 400 bales, Tando Adam at Rs2,535 to Rs2,550, 900 bales, Qazi Ahmed at Rs2,575, 300 bales, Sakrand at Rs2,575, 200 bales, at Rs2,550, 300 bales, Jam Sahib at Rs2,575, 600 bales, Shahdadpur at Rs2,575, 200 bales, Sarari at Rs2,575, 200 bales, Mirpurkhas at Rs2,450, 2,000 bales, Jhole at Rs2,550, 200 bales, Shahpur Chakker at Rs2,575 and 600 bales, Nawabshah at Rs2,575.