KARACHI, Aug 18: Active trading was witnessed on the cotton market on Saturday as spinners continued covering their forward positions at the lower rates followed by reports of pest attack in Punjab cotton belt and fears of damage to standing crop.

The new development worries stakeholders of cotton trade as the attack is claimed to be serious in some areas and if extensive spraying is not done the crop may be short in the Punjab belt also, ginners said.

“Taking on chance about their supply positions, spinners and mills tried to grab as much bales as they could at the current levels of Rs2,925 and Rs3,000 per maund,” they said.

Spinners were worried over the future price outlook as unofficial estimates of crop damage could push prices to their pre-reaction levels.

“Trading conditions on the cotton market remained terribly unsettled as stakeholders in cotton trade could not precisely decide how to react to the changing background news about the crop projections,” said a cotton consultant.

The important thing is that the world prices may also rise after the reports of damage to crop in major growing areas of the Punjab are confirmed, he said, adding “it will create more problems for the spinners on the supply front”.

“The general perception is that if the Punjab crop is damaged beyond the economic injury level, foreign lint may also be expensive and imports of lint may not be feasible,” brokers said.

About 10,000 bales changed hands both from the Sindh and central Punjab cotton belts between Rs2,900-Rs2,950 and Rs3,025 per maund depending on quality.

Mill ready offtake was on the higher side totalling about 10,000 bales, following being some of the notably deals.

SINDH VARIETY: 1,500 bales, Tando Adam at Rs2,900, 1,000 bales, each Shahdadpur and Mirpurkhas at Rs2,950, 1,000 bales, Sanghar and 800 bales, Khipro at Rs2,925 to Rs2,950 and 200 bales, Sultanabad at Rs2,925.