KARACHI, June 12: Cotton prices on Wednesday maintained their upward drive for the third session in a row as those spinners holding short positions were not inclined to take even a technical breather.

Official spot rates were quoted further higher by Rs25 per maund at Rs1,675, reflecting the strong presence of mill demand. An identical increase was reported in the ready market also.

The notable feature was that another big fine lot from an upper Sindh ginnery was sold at Rs1,900 per maund, indicating the leading spinner groups are out to lift quality lint irrespective of the asking prices, dealers said.

“I don’t think price war has started between the spinners and the exporters as both have to work within the framework of international export parity level”, brokers said.

Unlike the previous weeks, there is now a scare among the buyers, notably those who hold short positions against their next two months consumption requirements and are out to grab the floating stock of lint and the consequent rise in prices.

Ginners also worried over their stock positions, which they claim are on the higher side and about Rs6 billion are tied to them, which they need to clear the outstanding dues of growers and adjust bank overdrafts before June 30, dealers said.

But they are holding on to their stocks expecting further rise in prices as demand from exporters and spinners is rising each day.

“In any case ginners are inclined to get out of their long positions before the arrival of new crop from the lower Sindh cotton belt, which could work both ways on the prevailing price trend”, market sources said.

They said the fresh increase in the New York cotton futures has also made world prices a bit expensive and that is said to be one of the reasons behind the current spinner strategy.

New York cotton futures were quoted higher by 0.24 and 0.42 cents at 38.95 and 41.45 cents per lb for both the ruling July and the distant October settlements respectively.

Ready business was light owing to higher asking prices and totalled about 3,000 bales as under; 200 bales, Kanderio at Rs1,630, 500 bales, Khipro at Rs1,650 and 2,000 bales, K-68 sawgin Dharki at Rs1,900.