KARACHI, Nov 6: Cotton prices on Tuesday rose to new seasonal peak as spinners and mills covered positions amid market talk of a short crop.

“It appears to be a belated spinner reaction to market talk of a short crop,” said a leading cotton analyst Naseem Usman, adding “what triggered buystops was the expected massive fall estimated at well over 2m bales”.

He predicted price could rise further during the next couple of weeks after the size of arrivals of phutti into the ginneries was fully known by the middle of the next month”.

Muhammad Adil, a prominent broker, said the panic mill buying reflected that spinners’ move not to opt for panic buying seems to have failed to check the price flare-up as some of them resumed their covering operations against forward sales of yarn and textiles.Major buying thrust was on the Punjab variety that was said to be of better quality as compared to its Sindh counterpart, he said.

While Sindh type was sold between Rs3,100 to Rs3,125 per maund, buyers of Punjab type were willing to pay more than Rs3,200 per maund, the highest bids being at Rs3,250.

Indications are that the lint may not be that cheaper as to ensure steady outflow of textiles in the coming weeks and spinners and mills are worried over the developing situation on the international cotton markets, which are heating up on the strong consumer demand, some others said.

It was in this background that the official spot rates were revised upward by Rs50 per maund at Rs3,125.

Ready off-take was on the higher side totalling about 30,000 bales, the following being some of the notable deals.

SINDH VARIETY: 400 bales, each, Nawabshah and Shahdadpur at Rs3,100 to Rs3,125, 200 and 600 bales, Pithro and Hala at Rs3,115, 600 bales, Mirpurkhas at Rs3,100 and 400 bales, Dadu at Rs3,040 to Rs3,050.