KARACHI, July 21: Trading on the cotton market resumed on a bullish note on Monday as some of the deals were finalised at a record high of Rs4,100 per maund on panic mill buying aided by reports of pest attack in some of the major cropping areas.

According to market sources 200 bales each, Burewala and Sahiwal changed hands at Rs4,100 per maund.

“The damage to the standing crop may not be that extensive as being viewed by the spinners at this initial stage as in the major growing areas the plants are still far away from the flowering stage,” said a leading ginner, adding: “spinners should have played safe until the outcome of spraying was available from the crop areas”.

But spinners said they are not inclined to take supply risk as they did last season and have to import about 4 million bales of lint from various sources to make up the local crop shortfall. “The cotton trade is again heading for a major crisis and the growers would be the chief beneficiary irrespective of the damage to standing crop,” said a local broker, adding: “the phutti prices are now being quoted at Rs2,000 plus per 40 kg”.

Analysts said reports of pest attack are pouring in from the entire cotton belt but in most cases it is in an initial stage and could be controlled during the coming weeks.But as spinners and mills, who are not inclined to take risks on the supply front, indulged in panic buying pushing prices to new peak levels, they said.

“It may not be the end of the current speculative buying,” they said, adding: “leading among the spinners and mills having an enormous fund at the disposal are out to destabilise the entire pricing system”.

Official spot rates were again revised upward by Rs50 per maund at Rs3,750 for an average quality lint, although in ready section most of the deals were done well above them.

The following are details of the mill ready off-take:

SINDH TYPE: 400 bales, Tando Adam at Rs3,990 to Rs4,000 and 200 bales, Hyderabad at Rs4,000.

PUNJAB VARIETY: 1,000 bales, Bahawalnagar, 200 bales, Chistian, 400 bales each, Bruewala and Muridwala at Rs4,000 and 400 bales, Sahiwal at Rs3,975 to Rs4,000.