KARACHI, Oct 16: The cotton market on Thursday maintained bullish outlook as spinners continue to make fresh commitments at the ginners asking prices followed by reports of limit-gain in New York cotton futures.

About 8,000 bales from the Punjab ginneries changed hands at Rs3,200 per maund, while Sindh type was traded between Rs3,000 and Rs3,100 but brokers said prices could rise further in sympathy with the world rates.

“There was a virtual panic among the spinners and mills after the reports of a steep rise in New York cotton futures reached here,” brokers said. “Well-informed among them who are closely watching the world cotton situation made frantic effort late last night to grab as many lots as they could irrespective of the asking prices.”

But ginners were not that ignorant of the positive developments on the world cotton front and raised their asking prices in sympathy with the speculative rise in New York cotton futures.

New York cotton futures on Wednesday finished around their 10-year peak level at 74.48 and 77.36 cents per lb, up by limit-gain of 2.86 and 3.00 cents per lb for both the ruling December and the distant March settlements, respectively.

The fresh rise in world prices was attributed to a short crop of about half a million bales in China owing to floods and reports that it is on the world markets with a big shopping list causing price flare-up.

“I fear a pretty difficult time for the spinners during the current season having a negative impact on their export drive,” says a cotton analyst. “The lint could be more expensive in the days ahead partly because of a short local crop and partly to higher world prices.”

The growers who still hold some unsold stocks of phutti seem to have won the price battle as the market is now entirely in their hands and could raise lint prices for the ginners benefit, he adds.

There was, however, no change in the official spot rates, which were quoted at the overnight level but in physical trading most of the deals were done above the Rs50 official spot rates.

The following are some of the notable deals reported in the ready section late on Wednesday evening: 600, 200, 800, 400, 400 and 200 bales, Bahawalpur, Bahawalnagar, Sahiwal, Kassowal, Burewala done at Rs3,000; 200 bales, Rahimyar Khan at 3,100; about 8,000 bales from the southern Punjab ginners at Rs3.200.