KARACHI, Nov 14: Trading on the cotton market on Monday resumed on a bullish note as mills and spinners haunted by a lower crop continued to make panic buying at the ginners’ asking prices. About 15,000 bales changed hands between Rs2,450 to Rs2,485 from the southern Punjab cotton belt known for its quality lint but Sindh variety was again neglected.

A leading floor broker said late in Monday evening some of the leading textile groups were buyers around Rs2,500 but ginners were reluctant sellers anticipating further increase in prices.

“It appears to be belated spinner reaction to crop shortage”, he said “but it may not be possible to contain the price flare-up as supply and demand factors are not at work”.

What seems to have alarmed the mills and the spinners are unconfirmed reports that the arrivals of phutti for the fortnight ending Nov 15, may be further lower, which in turn could significantly to the rising prices.

Ginners said the market is in the tight grip of the grower who is not only raised his selling price of phutti well above Rs1,100 per 40 kg but also holding on to the stocks.

“The crop may short well below the official estimate of 12.5m bales, they said and growers are aware of the crop size and have raised their asking prices”.

They said spinners may be at the receiving-end as owing to initial higher crop ideas they forced them to make guarded buying commitments amid hopes of fall in prices but the situation turned quite the reverse.

Official spot rates were, therefore, raised by another Rs35, although in the ready section most of the deals in Punjab variety were done well above them.

Ready off-take was active but ginners were reluctant sellers amid market talk of further increase in prices. The following are some of the notable deals, finalized mostly in the Punjab variety:

SINDH TYPE: 100 bales, Sanghar at Rs2,325.

PUNJAB VARIETY: 1,000 bales, Khanpur at Rs2,485 and 1,000 bales at Rs2,475, 1,000 bales, Jahania also at this rate, 1,400 bales, Sadiqabad, 400 bales, Gojra at Rs2,450, 1,000 bales, each Rajanpur, Bahawalpur at Rs2,450 to Rs2,475, 1,000 bales, each Ahmedpur East and Rahimyar Khan at Rs2,460 to Rs2,475, 1,000 bales, Jalalpur at Rs2,460 to Rs2,475 and 1,000 bales, Burewala at Rs2,450 to Rs2,460.