KARACHI, Nov 29: Cotton prices on Wednesday maintained their upward drive amid panic buying by the spinners and mills despite the fact that the crop is not that short as being speculated by some of the quarters.

After Tuesday’s absence, buyers were back in the market and made extensive buying around the average rate of Rs2,550 per maund for fine varieties from the southern Punjab cotton belt.

About 25,000 bales including some big deals were reported as leading textile groups were not inclined to have a mid-season look at their inventories, brokers said.

Floor brokers said crop in Sindh was short owing to late rain and damage to standing crop at the flowering stage, but the loss was covered by the higher production projections in the Punjab cotton belt.

“The panic mill buying reflects some changes on the world textile export markets and the relevant quarters have found the clue of the developing situation,” market sources said.

The next year could put the textile sector back on the rails although early season losses on the export front may not be fully recouped, they said.

But some others said panic among the spinners reflected their fear of further rise in prices.Official spot rates were revised upward by Rs25 per maund at Rs2,475 although most of the deals were done well above them.

New York cotton futures on the other hand ran into profit-selling at the higher levels and were marked down by 0.29 and 0.19 cents at 48.71 and 52.91 cents per lb for both the ruling December and the distant March settlements respectively.

Mill ready off-take was on the higher sides till late in the evening about 25,000 bales changed hands as under:

SINDH VARIETY: 400 bales each Khipro, Bucheari, Daur and 500 bales Tando Adam at Rs2,375, 800 bales Mirpurkhas at Rs2,365-2,390 and 800 bales, Khanpur at Rs2,375-2,400.