KARACHI, Nov 17: Cotton prices on Monday resumed their upward thrust followed by reports of some rethinking on the size of the crop based on private survey. Spot rates were again raised by Rs125 per maund to Rs3,225 per maund excluding the 15 per cent sales tax.

But later in the evening, some leading spinners were buyers for fine lots from the Punjab ginneries around Rs3,300 per maund and dealers reported a fair business at this rate.

“Lint prices are again heading to their pre-reaction level of Rs3,600 per maund as spinners and mills are out to grab the floating stock”, leading brokers said.

Although official crop estimate is still valid at 10m bales, but surveys carried out by some private agencies and leading brokerage houses put the total figure slightly above 9m bales.

“Spinners and mills are not that fool to cause price flare-up, which works against their own parity levels”, says a leading broker who recently toured the Punjab cotton belt “they have a fair idea of the total crop and are out to cover their forward positions against sales of cotton yarn”.

The current price flare-up after the previous week’s decline of Rs300 per maund in fine types reflects that the target of an average rate of Rs2,800 per maund may not be achieved, he says.

Spinners say New York cotton futures do play a role in the local prices as ginners hasten to calculate the landing cost of the imported stuff and instantly raise prices to those levels or close to them.

“We are awaiting the promised official relief package to offset the negative fallout of the current price flare-up on exports before taking fresh steps to minimize our losses on the export front”, they said.

But high-ups of the ancillary industry claim spinners are passing on the higher cost of yarn to them after raising prices of cotton yarn in line with the lint rates.

The export of textiles may be hit-hard in the current quarter because foreign buyers are not inclined to share the extra cost of higher lint prices, they said.

Official spot rates were upped by Rs125 per maund apparently in line with prices at which physical business was done on Sunday or late Saturday evening.

Ready offtake was light totalling about 8,000 bales between Rs3,250 to Rs3,300 for fine lots from the Punjab and upper Sindh ginneries and Rs3,1,50 to Rs3,200 for the Sindh lots from the central Sindh cotton belt.