KARACHI, Oct 10: Cotton prices on Monday resumed their upward drive and were quoted further higher by Rs75 per maund as spinners and mills indulged in panic buying. Although cotton is not grown in the earthquake-hit areas, its prices soared ahead of expected pressures on the economy in the post-quake scenario, says a leading broker.

In physical trading, most of the deals in were finalized at around Rs2,400 per maund in the Sindh variety and Rs2,400 to Rs2,450 in the Punjab variety depending on quality of lint.

Growers are also holding on to their unsold freshly picked phutti, signalling to sell at around Rs1,200 or above. Ginners are already fixing the unfixed deals with the growers at around Rs1,100 or Rs1,125 per 40 kg.

“As the rumours about a short crop in the Punjab cotton belt continue to haunt spinners, they are not inclined to take even a calculated risk and are in an obliging mood at the ginners’ option,” market sources said.

The crop may or may not be that short, but the market has again been passed into the hand of the grower who will set its direction as he would like and according to his overheads, including cost of inputs, they said.

Floor brokers said the spinners were not inclined to take even a technical breath and continued to make fresh buying, mostly at the ginners’ asking prices irrespective of the quality of lint.

Both the spinners and mills are obliged to follow the trend being set by the ginners as they can’t withdraw to the sidelines and have to cover their forward sales of yarn and cloth, they said.

Meanwhile, the TCP has floated another tender for the sale of 50,000 bales after having sold about 43,000 bales to foreign buyers at 45 to 46 cents per lb on Oct 17, and is expected to receive positive response in the wake of rising lint prices.

Ready business was on the higher side totalling about 12,000 bales as under:

SINDH TYPE: 1,000 bales, Bucheri at Rs2,400 to Rs2,425; 1,000 bales, Shahpur Chakkar at Rs2,400 to Rs2,415; 1,000 bales, Sultanabad at Rs2,360; 800 bales, Sanghar at Rs2,350 to Rs2,400; 200 bales, Khipro at Rs2,375; 600 bales, Nawabshah and 200 bales, Tando Muhammad at Rs2,425.