KARACHI, July 18: Cotton prices on Friday were quoted further higher by Rs25 for the second session in a row followed by reports of holding back of phutti stocks by the growers, market sources said.

But some others attributed the sudden price flare-up to reports of pest attack in some of the major growing areas and market talk of below target production figure of lint.

As a result, some of the deals were once again at the peak level of Rs4,000 per maund amid fears that this level may be crossed in the coming sessions followed by panic mill demand, they added.

“Vested interests do float conflicting rumours at this time of the season to keep buyers and sellers at their toes,” said a leading cotton analyst, adding: “How one could guess the crop is short as in the major growing areas the tender plants are still to reach a flowering stage.”

No one could deny the fact that White Fly has attacked the standing crop in some of the areas but the incident of Curl-Leaf was said to be not that alarming and it could be managed by proper pest control, he said.

But the rumours were so strong that it did affect the normal trading on the cotton market at rates said to be competitive both from the buyers and the sellers, some others said.

Floor brokers said leading spinners and mills have curtailed the daily intake in an apparent effort to contain a fresh price flare-up.

Official spot rates were again revised upward by Rs25 per maund at Rs3,700 but most of the deals in the ready section were done well above them.

New York cotton futures, on the other hand, suffered modest fall on trade selling as both the ruling October and the forward December contracts were quoted lower by 0.62 and 0.72 cents per lb at 70.29 and 73.11cents, respectively.

Mill ready off-take was on the lower side totaling about 3,000 bales, the following being some of the notable deals: 200 bales, Tando Adam and Pir Mahal, at Rs4,000, 200 bales, each Gaggon and Mian Channu at Rs3,985, 600 bales, Chishtian at Rs3,975 to Rs4,000 and 200 bales, each Arifwala and Khanewal at Rs3,950.