KARACHI, May 12: Cotton prices on Friday tended further higher as a leading spinner group indulged in big-lot business in an apparent effort to grab the floating stock amid relatively active trading.

Reports of shortage of irrigation water just at the time of sowing of new crop and its bullish impact on the local prices worried spinners and mills.

However, leading spinners are not inclined to speculate about the future supplies at this early stage and will wait until the new crop sowing period ends on June 15, market sources said. In physical trading, a big lot of 8,000 bales from a southern Punjab ginnery was sold at Rs2,500 per maund amid a loud whispering that falling unsold stocks with ginners could push prices further higher, brokers said.

But some others are of the opinion that the TCP May 16 tender for 30,000 bales may fetch higher prices, it could take steam out of the market at least for the near-term.

“After the current tender, unsold stocks with the TCP will be slightly below 0.1m bales and it should hold on to it till the problem of irrigation water is resolved and normal new crop sowing is completed,” spinners said.

“There are two opinions about the future supplies of lint but spinners are preparing themselves to meet any situation after having planned on long-term basis,” says a leading broker, adding “the current increase in prices and big-lot business is based on this perception”.

Official spot rates were, therefore, increase by Rs25 in line with ready rates, although some of the lots were sold well above them.

New York cotton futures also posted gains of 0.87 and 0.93 cents at 51.31 and 54.20 cents per lb for both the ruling July and the forward October settlements respectively.

Ready off-take was active totalling about 12,000 bales as under: 8,000 bales, Jahania at Rs2,500, 400 bales, Makhdoom Rashid and 500 bales, Rahimyar Khan also at Rs2,500 and 1,800 bales, upper Sindh at Rs2,460.