KARACHI, Nov 7: Cotton prices on Wednesday maintained their upward drive for the third session in a row as spinners and mills continued to make panic buying at the current levels.

About 30,000 bales changed hands as leading mills were not inclined to take even a technical breather fearing fresh increase in prices, floor brokers said.

While fine varieties were traded as higher as Rs3,300 per maund mostly from the Punjab ginneries, average selling rate being Rs3,250, they said.

“I don’t think an imminent price flare-up could be contained at this stage as supply and demand factors are now at their work,” said a cotton analyst, adding “I fear lint prices could surpass the previous all-time peak of Rs3,650 set two years back”.

A fresh rebound staged by the New York cotton futures was said to be another supporting factor behind the current price flare-up on the local market and indications were that import may become costly in the coming week, they said.

Meanwhile, reports reaching here from the cotton belts indicate that arrivals of phutti into the ginneries, notably in the southern Punjab, are normal as a section of leading growers is inclined to sell their stocks around Rs1,700 per 40 kg, market sources said.

The interesting feature is that unlike the previous season no one among them is inclined to keep his stock in the ginneries on an unfixed basis owing to an uncertain market and is selling at the current rate, they added.

Official spot rates were quoted further higher by Rs25 per maund at Rs3,150 per maund, while New York cotton futures rose by 1.15 and 0.95 cents per lb at 65.17 and 69.62 cents for both the ruling December and the forward March contracts respectively.

The following notable deals were reported on Wednesday evening:

SINDH TYPE: 1,000 bales each, Shahdadpur and Khairpur at Rs3,125 to Rs3,150 to Rs3,225, 400 bales, Setharja also at Rs3,225, 400 bales, each Mirpurkhas and Khipro 600 bales, Sanghar, 200 bales and Tando Adam at Rs3,125.