KARACHI, Dec 2: The cotton market on Saturday maintained bullish outlook as spinners and mills continued to make panic buying followed by fears of pressure on future supplies. Prices were quoted higher by Rs50 per maund as compared to overnight levels.An idea of mills panic buying may well be had from the fact that most of the big deals were done at around Rs2,600 per maund after the price-war among the spinners and mills intensified, brokers said.

“Both the price and quality war appears to be at its peak,” they said, adding: “One group is out to grab the floating stock and the other is after each fine lot irrespective of price tag.”

The crop may not be that short as being speculated by some quarters together with imported stuff that may be enough to the see the current season through, some other said.

They said owing to reported slowdown in exports of textiles, mill demand may not touch the projected figure of 14m bales plus.

Local production of 12.7m bales could be reinforced through import from India deals for which has been signed by the Punjab spinners and stray consignments have already arrived via overland route, they said.

Ginners said arrivals of phutti were falling each day, while small growers have already sold their stocks, some of the leading ones are still holding on their stocks to sell them at further higher rates.

That is perhaps why there are conflicting reports about the size of the crop and until back phutti reached ginneries, it is pretty difficult to have a fair idea of the supplies, they said.

Phutti rates are being quoted at around Rs1,325 per 40 kg but what seems to be fuelling speculation about a short crop is holding back of phutti by growers, they added.

Official spot rates were quoted higher by Rs50 at Rs2,525 per maund but in the ready section most of the deals were finalised around Rs2,600.

New York cotton futures also recovered from the previous lower levels on the revival of speculative demand and were quoted higher by 0.43 and 0.18 cents per lb at 49.33 and 53.68 cents for both the maturing December and the forward March contracts, respectively.

Mill ready offtake was on the higher side rising to 25,000 bales, all big lots the following being some of the leading deals:

SINDH VARIETY: 2,000 bales, Gothki, Dharki and Mirpur Mathelo at Rs2,600.