KARACHI, Jan 28: The bull-run initiated on the cotton market a couple of sessions earlier was well sustained as prices were quoted further higher by Rs50 per maund amid an active traded session.

Later in the evening some of the fine lots from the southern Punjab ginneries were traded as higher as Rs3,500 per maund and leading cotton analysts predict prices could rise further in the coming sessions.

Owing to price flare-up on the local market a private sector exporter sold 1,000 bales to a mill at Rs3,450 per maund on Karachi delivery basis.

“It is now a quality-based price war between the leading textile groups, each one of which out to corner the entire floating stock irrespective of ginner asking prices,” they said.

They said the strong mill buying is not based on speculative thinking but is based on the current improvement in the world yarn and textile prices and both spinners and mills are terribly engaged to cover their forward sales.

The other contributory positive factor, apart from a short crop, was said to be higher export orders for both yarn and textiles for the first quarter ending March 31.

“Whether or not the TCP would get required offers from the ginners owing to current price flare-up to Rs3,500 per maund as its procurement price is too low,” is the question being debated among the leading brokers.

They said ginners, still holding fine lots, will certainly opt for higher rates offered by the spinners and mills rather than tendering them to the TCP at lower prices.However, some of the ginners, who are still holding inferior quality lots, will go for the TCP tenders for 0.2m bales due next month.

Official spot rates quoted further higher by Rs50 to 3,400 per maund, were still well below those at which physical business was being done.

New York cotton futures, on the other hand, shed 0.72 and 0.34 cents per lb at 51.35 and 51.75 cents for both the ruling March and the distant May contracts, respectively.

The following are some of the notable deals reported in the ready section late on Wednesday evening:

SINDH TYPE: 1,400 bales, upper Sindh at Rs3,400 to 3,450, 2,000 bales, Khairpur at 3,140 to Rs3,250, 400 bales, Kandiaro at 3,250, 800 bales, Shahdadpur at 3,250 to Rs3,300,500, 400 and 200 bales, Sultanabad, Pithoro and Tando Adam at 3,300 bales.

PUNJAB VARIETY: 5,500 bales, Rahimyar Khan at Rs3,300 to 3,500, 2,000 bales, Khanpur at 3,350 to 3,500, 1,000 bales, Ahmedpur East at 3,400, 800 bales, Burewala at 3,350, 2,612 bales, Fazilpur at 3,425, 200 bales, each, Khanewal, Alipur and Chishtian at 3,300.