KARACHI, Feb 6: Trading on the cotton market on Monday resumed on a steady note as spinners and mills extended strong support at the rising prices amid fears of pressure on supplies.

An idea of panic mill buying may well be had from the fact that they purchased about 25,000 bales at the higher rate of Rs2,575 per maund. Unconfirmed reports say some of the spinners were buyers at around Rs2,600 for fine lots.

“After keeping to the sidelines during the post-arrival figures sessions, the spinners re-entered the market with big orders irrespective of the price tag,” brokers said. “But ginners were reluctant sellers anticipating further increase in prices.”

“We are probing the factors behind the sudden panic buying by the spinners and mills,” says a leading ginner, adding: “The crop is certainly below the target but not that short to send panic signals.”

The general perception is that prices could rise further from the current levels if leading spinner groups tried to grab the floating stock of lint despite the fact that unsold stock with the ginners are still above the 2m bales figure.

“It is now a straight fight between the ginners and spinners and the prevailing panic among the latter could push the former in a commanding position in the weeks to come,” cotton analysts predict.

According to market sources, the current hike in yarn prices and demand both on the local and foreign markets had triggered a fresh mill buying irrespective of asking prices.

As a result, official spot rates were revised upward by Rs15.00 per maund at Rs2,525, although in the ready section most of the deals were done higher by Rs50.

Ready offtake was fairly active totalling about 25,000 bales, including some big deals, the following being some of the notable deals: 5,000 bales, Gothki, Dharki and Mirpur Mathelo at Rs2,575; 2,000 bales, each Bahawalpur and Rahimyar Khan at Rs2,575; 1,000 bales, each Alipur, Burewala and Duniyapur and 600 bales, Raja Ram also at Rs2,575.