KARACHI, Nov 5: Cotton prices on the local cotton market again rose in response to higher New York cotton futures but spinners were undecided whether or not to buy at the ginners options.

Ginners were not inclined to sell their stocks of lint below Rs3,400, while spinners and mills were in no mood to go beyond their parity level of Rs3,350 per maund and the consequent temporary standoff.

“The higher arrivals of phutti showing an increase of 24 per cent over the previous total failed to have any negative impact on the phutti or lint prices”, dealers said adding “the supply and demand factors appear to be the dominating factors behind the price trend”.

The general perception is that the bulk of the phutti has already arrived in the ginneries as in most of the cotton growing areas picking operations are expected to be completed by the end of the current month.

“The unsold stock of 1.2m bales lying in the ginneries should have reassured spinners that they still enjoy an upper hand and could manipulate prices in their favour”, market sources said “but financially viable among them and having firm export orders for the current quarter ending Dec 31, are not inclined to take a breather and continued to make panic buying”.

That is perhaps why ginners are inclined to pay more for the phutti as they are pretty sure that buyers are there at will buy at their asking prices, they said.

The chief factor behind the current price flare-up is not fears of a short supply but is claimed to be panic buying by those mills and spinners who financially viable and could spend more on cash basis.

Floor brokers said in normal crop conditions larger arrivals do influence prices on the lower side but as the crop figure is disputed it failed to produce desired impact.

The future price outlook appears bullish as the developing scenario shows. Both the local and foreign crop figures are expected to set the price trend in the coming weeks.

New York cotton futures on Tuesday rose sharply higher by 1.14 and 1.22 cents per lb at 77.65 and 80.25 cents per lb for both the ruling December and the forward March settlements after the recent decline.

Local official spot rates were also raised by Rs25 to Rs3,275 but in the ready section bulk of the business is being done well above them.

The following are some of the notable deals, which gone through late on Tuesday evening, all from the Punjab ginneries: 1,200 bales, Bahawalpur at Rs3,350, 1,500 bales, Lodhran at Rs3,300, 1,000 bales, Rajanpur, 600 bales, Burewala, 400 bales, Fazalpur, 800 bales, Hasilpur and 200 bales, Shujabad at Rs3,350, 600 bales, Chishtian at Rs3,325, 600 bales, Kabirwala and 200 bales, each Gojra and Mian Channu at Rs3,300.