KARACHI, Sept 4: Trading on the cotton market on Monday resumed on a bullish note as spinners and mills continued to make panic buying followed by reports of a short crop.

Some big-lot business reflects the prevailing panic among the spinners who are obliged to follow the price lead given by the ginners amid market talk of pressure on supplies in the sessions to come.

Most of the deals in Sindh variety were finalised between Rs2,600 and Rs2,685 per maund, while in the central Punjab type around Rs2,750, showing an increase of Rs50 to Rs75 per maund over the weekend close.

“The price war among the spinners has already started as the physical trading during the last couple of sessions reflects,” brokers said, adding “but their weaker links are worried over the persistent price flare-up as it was not fully reflected in the cotton yarn prices”.

Spinners said there could be more than one problems on the export front owing to higher local prices and inputs, it may not be possible for them to compete on the world textile markets.

What worries them the most is the predictions of further increase in prices as reports about the damage to crop would continue to reach market through various sources, they said.

“After having purchased phutti at Rs1,225 per 40 kg (official support prices at Rs1,025) it is pretty difficult for us to match export parity level of spinners and mills,” ginners said.

The crop is facing two problems, they said, adding “one is post-rain pest attack and the other is damage caused by rain in some of the areas, notably of Sindh cotton belt.Official spot rates were further raised by Rs50 at Rs2,625 per maund but in physical trading most of the deals were done about Rs125 higher, notably in the central Punjab cotton belt.

Ready off-take was on the higher side totalling about 10,000 bales as under.

SINDH VARIETY: 1,000 bales, Mirpurkhas at Rs2,600 to Rs2,625, 1,000 bales each Tando Adam and Shahdadpur at Rs2,600 to Rs2,675, 800 bales, and Hyderabad at Rs2,600 to Rs2,685.