KARACHI, July 4: Cotton prices on Wednesday swelled to new seasonal peak level as some of the new crop lots from the central Punjab cotton belt were traded as higher as Rs3,030 per maund.

“Lint prices are moving to new highs after about a decade as rumours of damage to standing crop in the Sindh cotton belt during the recent rain continued to inspire strong mill buying,” floor brokers said.

According to market sources some of the ginneries in Sahiwal and Pak Pattan has resumed operations some time back as picking of early sown crop was started a couple of weeks earlier.

But they said some of the Punjab ginners also purchased phutti from the lower Sindh agents and mixing it with the Punjab managed to sell lint at much higher rates.

A leading cotton analyst Naseem Usman said prices may rise further higher as supplies are far below the daily demand of mills and spinners.

“Prior to the current monsoon rain spell some of the lower Sindh ginners have made forward deals for August delivery around Rs2,525 per maund but steep rise in Punjab lint reflects that spinners are panicky and making ready deals in panic.”

In the central Punjab cotton belt new crop is sown well before the normal sowing time and it matures in line with that of the lower Sindh variety, he added.

Official spot rates on the other hand were firmly held at the last level of Rs2,650 per maund, while the new crop deals both in the Sindh and Punjab varieties are being finalised at much higher levels.

The following are details of new crop deals in the Punjab lint per maund: 1,000 bales, Burewala at Rs3,000 and 300 bales, Sahiwal at 3,030.

Phutti rates in Punjab fluctuate between Rs1,350 to 1,375 per 40 kg.