KARACHI, Nov 6: Trading on the cotton market on Monday resumed on firm note as mill support remained at its peak level followed by conflicting reports about the size of the crop.

Sindh type was traded around Rs2,365 to Rs2,400 per maund depending on quality, while major spinner buying thrust remained confined to the Punjab variety for quality reasons. Most of the deals were finalised at Rs2,450.

Floor brokers said owing to steady increase in mill buying, lint prices in the ready section had been raised by Rs75 per maund by the ginners and if the current panic mill buying was sustained they could rise further.

As a result, another 40,000 bales changed hands, including big-lot deals of 4,000 and 5,000 bales, reflecting the spinner scramble to grab the floating stock, they said.

“Apart from fears of a price war, the cotton trade is heading for a crisis amid fears of pressure on supplies,” market sources said, adding “a big spinner cartel appears to be out to outwit others after having indulged in big-lot business on the strength of their sound financial footing”.

Spinners said although news from the textile export market were not very encouraging owing to higher global crop ideas and falling demand from the major importers, fears about a short crop continue to haunt them and added to it rising prices of lint.It was in this background that the official spot rates were revised upward by Rs25 per maund but were still Rs50 to Rs75 lower as compared to those at which physical business was being done.

Mill ready off-take was maintained on the higher side totalling about 40,000 bales, the following being some of the notable deals:

SINDH VARIETY: 2,000 bales, Shahdadpur at Rs2,385 to Rs2,400, 1,000 bales, Sultanabad at Rs2,400, 1,000 bales, Tando Adam at Rs2,365 to Rs2,375, 1,000 bales, Nawabshah at Rs2,375 to Rs2,400, 1,000 bales, Sanghar at Rs2,350 to Rs2,375 and 800 bales, Sarhari at Rs2,400.