KARACHI, July 27: Cotton prices on Friday rose to a new seasonal peak level of Rs3,200 per maund as a leading textile group was said to be after each ready lot irrespective of the asking prices.

A deal of 200 bales from a central Punjab ginnery in Arifwala was finalised at the decades higher rate of Rs3,200 per maund. “If the spinners continue to make panic buying prices may set new records in the coming weeks”.

They said that about three decades back lint prices had hit the so far all-time high at Rs3,600 per maund owing to a short crop below 10m bales.

The current season crop in Sindh may be short as rain and floods damaged standing crop in some areas but the shortfall may not be that large as was being speculated by some quarters, they said.

“The crop in Sindh beyond Nawabshah and in upper Sindh belt is said to be safe and its growth is normal and may in part compensate for the losses in the lower Sindh area,” said a ginner.

The current price flare-up is being fuelled by reports of damage to Sindh crop and higher international prices which have made imports of lint uncompetitive, said a leading spinner.

However, he says prices may not ease from the current level until picking operations in major growing areas resume.

Official spot rates were firmly held at the last level of Rs2,900 per maund but in physical trading most of the deals in the ready section were done higher by Rs250 to Rs300 per maund.

New York cotton futures on the other hand fell from their recent highs and were quoted lower by 1.25 and 1.16 cents per lb at 60.75 and 62.79 cents for both the ruling October and the December settlements respectively.

Mill ready offtake was active as about 4,000 bales changed hands till late in the evening.

SINDH TYPE: 1,200 bales, Sultanabad at Rs3,050 and 400 bales at Rs3,095, 400 bales, Tando Adam at Rs3,060 to Rs3,100, 400 bales, Kot Ghulam Muhammad at Rs3,050 to Rs3,065, 200 bales, Mirpurkhas at Rs3,075.