KARACHI, March 8: Cotton prices on Friday sought further higher level as ginners raised their asking prices after spinners enlarged their moping operations against their forward sales of cotton yarn.

Most of the ginners holding quality lots were said to be sellers around Rs1,750 per maund, while some of them are now eyeing the level of Rs1,800 as the official spot rates encountered three upward revisions of Rs75 during the last couple of sessions.

On Thursday a group of leading spinners who is claimed to be fully booked for the last quarter ending June 30, purchased selected lots from the upper Sindh ginneries at Rs1,750, which together with the 15 per cent sales tax mean a rate close to Rs2,100 per maund.

The change in the market psychology was largely attributed to the strong presence of the TCP, of course, under the official directive to bail out the ginners from the production glut, but scare among the spinners about further increase in prices also aided the sentiment.

“Unlike the previous week, there are now more than one selling outlets”, says a leading ginner “Lots rejected by the TCP for quality reasons are readily purchased by the spinners mostly at the higher rates”.

And to it is the presence of exporters who are also active now after securing sizeable export orders from the foreign buyers at competitive rates.

Floor brokers said there is possibility of further heating up of the cotton market as spinners still have to go a long way to cover their annual consumption requirements.

According to them spinners still need another 1.5 million bales of lint to cover their annual demand and that could well mean their continued presence in the market and the consequent bullish outlook, they added.

The interesting feature of the recent positive developments is that local prices are inching up above the world rates, which may create some problems for the leading exporters who sell fine lots. But those who exports inferior lots are least worried.

Meanwhile, reports coming from the upper Sindh and southern Punjab ginneries indicate that growers are dumping their phutti held back to get higher prices after a modest rise witnessed during the last couple of sessions.

After successive upward revisions, official spot rates were firmly held amid light trading.

Ready offtake was modest as till late in the evening about 3,000 bales changed hands as under: 200 bales, K-68 Sawgin, Kumb at Rs1,650, 600 bales, Mirpur Mathelo at Rs1,700, 400 bales, Rohri at Rs1,730, 600 bales, Gothki at Rs1,730 and 800 bales Dharki also at Rs1,730 and 200 bales, Burewala at Rs1,400.