KARACHI, June 29: Cotton prices on Friday moved further higher by Rs100 per maund for fine lots from the southern Punjab cotton belt as some of the spinners indulged in panic-buying.

“Both the dwindling local stocks and higher world prices seem to have created crisis-like conditions in the cotton market followed by panic-buying by mills,” said a leading cotton analyst Naseem Usman.

He said an idea of panic-buying may well be had from the fact that a deal of 400 bales was finalised at the season’s so far peak level of Rs2,900 per maund.

Market sources said the cotton prices were likely to touch new peak during the current season as some of the spinners and mills, short of their annual consumption needs, may go all-out to grab the floating stock leading to a fresh price flare-up.The Rs20bn-package for the textile sector is expected to enhance the buying capacity of spinners and mills, which could trigger price war among them, they observed.

The local price situation was also accentuated by higher advices from the foreign markets where the lint was becoming expensive.

According to ginners the unsold stocks may not be more than 40,000 bales and bulk of it is quality lint that can fetch further higher prices.

The next couple of sessions could be very crucial for the future price trend as Indian exporters have also raised their asking prices both through overland route and by sea and that is perhaps why details of forward import deals are not immediately known to the market circles, said a leading floor broker.

But one thing appears certain ginners will keep slow in an attempt to raise their asking prices during the next couple of days depending on mill demand.

Official spot rates were raised by another Rs25 per maund at Rs2,650 for average quality but fine lots were quoted about Rs200 per maund higher.

Ready off-take was modest totalling about 5,000 bales as under: 600 bales, Mirpukhas at Rs2,575, 400 bales, each Tiba Sultan and Shujabad at Rs2,900, 2,000 bales, Multan at Rs2,850.