KARACHI, Dec 7: Brisk trading was witnessed on the cotton market on Wednesday as spinners and mills indulged in panic buying followed by reports of pressure on future supplies owing to a short crop.

The spinners and mills were anticipating a further fall in prices owing to higher latest fortnightly arrival figures, but as ginners held on to their positions rather that raising their asking prices, there was a scare among them amid fears of an imminent price flare-up, brokers said.

About 50,000 bales changed hands reminiscence of a bull market in the previous years when the mill daily intake averaged between 50,000 and 60,000 bales, the highest single-session turnover being 0.1m bales.

Most of the big deal, including 8,000 from Rahimyar Khan ginneries, was done at Rs2,400, while other notables, including 3,000 each from Lodhran and Bahawalpur, were done at Rs2,375 to Rs2,400, up Rs25 from the previous day’s ready rates.

“Just in one go, the market has again slipped into the hands of growers who still hold substantial quantity of phutti in their godowns,” says a cotton analyst. “Prices could move further higher as ginners have to base their selling prices on newly arrived phutti.”

The spinners and mills would have to readjust their textile export portfolios in the light of new situation to be caused by a short crop, he adds, but some others said the crop situation would be clear after the next fortnight’s arrivals ending Dec 15, 2005.

It was in this background that official spot rates were further revised upward by Rs20 per maund to Rs2,360.

The following are some of the important deals, which gone through on Wednesday:

SINDH TYPE: 4,000 bales, Nawabshah and Bandhi at Rs2,275 to Rs2,300; 3,000 bales each, K-68 sawgin Khairpur, Gothki, Daharki and Mirpur Mathelo at Rs2,325 to Rs2,400.