KARACHI, July 28: Cotton prices on Saturday remained stable around the overnight levels as spinners and mills did not indulge in panic-buying and lifted only those lots which conform to their export parity levels.

While Punjab type was traded at a uniform rate of Rs3,150 per maund and did not rise to overnight level of Rs3,200 as was earlier speculated but Sindh variety showed wide fluctuations in line with the quality premiums and traded between Rs3,070 and Rs3,100 per maund.

Floor brokers said leading spinners were a bit worried over reports of pest attack in some of the areas of the Punjab cotton belt notably in Vehari, though it did not have any immediate impact on prices.

The recent rain in some parts of the Punjab cotton belt seems to have provided a breeding ground for the pests but timely corrective steps including extensive spraying could control it at the initial stage and prevent its spread to other areas, they said.But prices of Punjab lint could rise further in the coming sessions after the extent of damage is available from the official sources, they added.

“Until now the Punjab cotton was billed as pest-free,” said a spinner, adding “the current reports about the pest attack in one of the best cotton growing area could push prices further higher”.

The cotton economy appears to be heading for crisis-like situation owing to short crop and an imminent price flare-up may turn very difficult achieving the export target, he said.

Meanwhile, reports coming from the major cotton growing areas, notably upper Sindh and southern Punjab indicate that condition of the crop is satisfactory.

Both theses areas produce best quality lint and mostly contamination-free which is generally sold at a much higher rates as compared to low-mic lint from other cotton zones.

Official rates were again held unchanged at the previous level of Rs2,900 for an average quality lint. Phutti rates were quoted around Rs1,350 to Rs1,450 per 40 kg.

Mill ready offtake was light totalling about 3,000 bales as under.

SINDH VARIETY: 400 bales, Sultanabad at Rs3,085, 400 bales, Sanghar at Rs3,075 to Rs3,100, 200 bales, Tando Adam at Rs3,100 and 200 bales, Mirpurkhas at Rs3,070.