KARACHI, July 9: Trading on the cotton market on Monday resumed on a bullish note as prices rose further higher by Rs100 per maund amid light trading. The notable feature was that a leading spinner purchased 1,900 bales of the current crop from an Ahmedpur East ginner at the season’s highest rate of Rs3,100 per maund. “Others may follow him to supplement their inventories,” cotton analyst Naseem Usman said.

While spinners and mills generally neglected the unsold stock of 30,000 bales mostly fine lots owing to higher asking prices, leading among them preferred to indulge in forward trading in the new crop for reasons best known to them.

“Some of the forward deals in the central Punjab lint for delivery early next month were finalised around Rs3,050 per maund surpassing the previous new crop rate of Rs3,030,” said a leading broker.

He said reports of damage to standing crop in the recent rains, notably in the Sindh cotton belt appears to be the chief reason behind the spinners’ panic buying.

“Although the figures about the reported damage to the crop are not available from any agency, spinners perceptions about a short new crop appears to be chief motivating factor behind their panic buying,” some others said.

However, stray forward deals reflect that all the spinners and the mills are not riding bandwagon as they are not inclined to go above their parity levels, leading among them are fuelling the price flare-up, they added.

In the absence of official figures, there is a relative quiet on the lint import front, although some of the leading spinners and mills are said to be receiving regular consignments from various countries, market sources said.

Official spot rates were firmly held at the last week’s level of Rs2,725, but in the ready section stray business was done well at much higher rates.

Mill ready offtake was light as only 100 bales of new crop from a Sahiwal ginnery changed hands at Rs2,950 per maund, while a couple of forward deals were finalised between Rs3,050 and Rs3,100 per maund for delivery early next month.