KARACHI, Aug 15: Physical activity on the cotton market on Friday was fairly active as price ideas of both the sellers and the buyers matched their respective parity levels.

The reports of pest attack and damage caused by heavy rain to the crop was said to be the chief factor behind panic-buying by mills fearing the official 12.6m bales target may not be achieved hence rise in prices, analysts said.

However, some others said it was too early to say something about the crop size as picking operations in major growing areas were still away at least by two months.

“The second monsoon rain spell mostly washes away mealy bug that has attacked the crop in some of the areas,” they said, and added: “but its renewed attack on the post-rain crop appears to be non-event after a big kill”.

However, reports reaching from the cotton belts indicate that growers have resumed more extensive spraying operations with some positive results, they added.

Well over 10,000 bales both from the Sindh and the Punjab ginneries changed hands on an average rate of Rs4,200 per maund, about Rs100 to Rs150 higher than the previous rate, floor brokers said.

However some of the fine lots from the central Punjab cotton belt were traded as higher as Rs4,275 per maund as arrivals of phutti into the ginneries suffered sharp fall owing to rain and suspension of picking operations.

Official spot rates did not show any change at Rs4,125 per maund, but in the ready section bulk of the business was done well above it.

New York cotton futures on the other hand failed to hold onto previous gains and fell by 1.73 and 1.71 cents per lb for both the ruling October and the forward December settlements at 67.09 and 69.48 cents.

The following notable deals were reported by the ginners on Friday:

SINDH VARIETY: 1,000 bales, each Shahdadpur, Tando Adam, Sanghar and Khipro, 600 bales, each Mirpurkhas and Hyderabad at Rs4,200 and 400 bales, each Jhole, Sinjoro and Hala also at Rs4,200.

PUNJAB TYPE: 800 bales, Kabirwala at Rs4,275, 600 bales, Gojra at Rs4,225 to Rs4,250, 600 and 800 bales, Arifwala and Burewala at Rs4,250.