KARACHI, Sept 23: Brisk trading was witnessed on the cotton market on Monday as spinners and mills indulged in near-panic selling amid reports of fall in arrivals of phutti into the ginneries.

But what seems to have triggered heavy mills buying was reports of damage to standing crops by the late pest attack in some parts of the central and southern Punjab cotton belt and fears of a short crop.

Punjab lint, which has been selling at a discount of Rs50 to Rs75 per maund as compared to its Sindh counterpart was sold at par on fears of a short crop, dealers said.

Most of the leading spinners and mills continued to lift all the lots being offered by ginners until mid-session but late in the afternoon ginners held on to their positions anticipating further rise in prices.

As a result, some lots changed hands at the day’s peak level of Rs2,035.

Most of the deals in both the varieties were done above the average rate of Rs2,000 per maund without 15 per cent sales tax, some lots of central Sindh were sold at Rs2,035, being the highest rate of the season, they added.

Floor brokers said cotton situation may further aggravate during the next couple of weeks after final reports about the damage to crop reach here.

But some others termed the price flare-up being speculative as rumours of a damage to crop appears to be “inspired”. Official crop reporting committee in its fortnightly meeting have reported slight damage to cotton in the Punjab cotton belt but it was below the economic injury level, they added.

Next few sessions will show whether or not the rumours of a short crop or holding back of phutti by the growers are correct.

Official spot rates were revised upward by Rs30 per maund but most of the deals in the ready section were done well above them.

Ready offtake was larger totalling about 10,000 bales, the following being some of the notable deals:

SINDH VARIETY: 200 bales of Jhole at Rs2,115; 800 bales, Sanghar at Rs2,000 and 200 bales at Rs2,025; 200 bales, Tando Adam at Rs2,000 and 400 bales at Rs2,010; 400 bales, Shahdadpur at Rs2,000 and 200 bales at Rs2,025; 1,000 bales, Mirpurkhas at Rs1,960; 400 bales, Sanghar at Rs2,010; 200 bales, Shahpur Chakkar at Rs2,025 and 200 bales at Rs1,990; 200 bales, Sarari at Rs2,025; and 200 bales from Daulatpur at Rs2,035.