KARACHI, Sept 8: Cotton prices on Thursday rose further as spinners and mills continued building up long positions in the new crop at the current levels, which are said to be competitive.

“The current price flare-up is linked to continued increase in New York cotton futures, followed by reports of damage to the crop in the recent hurricane,” brokers said, adding that the breach of the 50-cent per lb barrier by both the contracts fuelled the current run-up in world prices.

Spinners said the US lint above 50 cents per lb was expensive for the local industry, as the local stuff is available at much lower rates and ruled out the possibility for fresh import at least for the near-term.

Both the mills and spinners have, therefore, opted for the new crop and are lifting all the lots offered by the ginners at Rs2,125 to Rs2,275.00 per maund depending on the quality of lint.

“The current accelerated activity in the ready section reflects that the spinners may have a fair idea of future price outlook and may resume normal local operations,” brokers said.

Meanwhile, the Trading Corporation of Pakistan has invited bids for the sale of another 50,000 bales, out of its unsold stock of 0.4m bales, hoping for an improved price from international buyers in line with the New York cotton futures.

But market sources said the benchmark bid price offered by the TCP might not be competitive for the local spinners, as they were getting the new crop at competitive rates at least for the near-term.

New York cotton futures were quoted further higher by 0.80 and 1.10 cents per lb for both the ruling October and the forward December contracts at 51.25 and 52.88 cents, respectively.

Local official spot rates were also raised by Rs25 for the third session in a row, in line with the ready at which physical business is being finalized.

Ready offtake was totalling about 8,000 bales, the following being some of the notable deals:

SINDH VARIETY: 2,200 bales, Mirpukhas at Rs2,125 to Rs2,150; 1,600 bales, Shahdadpur at Rs2,170 to Rs2,190; 1,400 bales, Kot Ghulam Muhammad at Rs2,175; 200 bales, Tando Adam at Rs2,160; 800 bales, Jhole at Rs2,150 to Rs2,160; and 200 bales, Sanghar at Rs2,150.