KARACHI, May 19: Physical business on the cotton market on Thursday modestly expanded as some of the ginners holding long positions of inferior lots appeared to be in a bit haste to unload them despite further increase in global prices, floor brokers said.

Most of the low-mix lots were traded between Rs7,300 to 7,950 per maund, while fine ones between Rs8,000 to 8,500, mostly from the southern Punjab ginneries, they added.

“There appears to be no apparent bearish reason behind the ginners' haste, they said, and added: “Fears of proximity of the new crop in a bigger way may be one of them”.

Some others said the current prices being offered by the mills for low quality lint are fairly competitive and are in line with the ruling global rates and ginners were right on the target.

But on the other hand, bull speculative squeeze on the New York cotton futures was further intensified as both the ruling May and new crop July settlements maintained their upward drive and were quoted higher by 4.82 and 1.68 cents per lb at 159.86 and 135.98 cents, respectively.

Only last week both fell to seasonal lows at 145 and 141 cents per lb on speculative selling but local prices did not behave in that fashion and followed local dictates, spinners said.

Official spot rates were, however, again firmly held at the last level of Rs8,500 per maund for an average quality lint.

The following are some of the notable deals reported by the Karachi Brokers Forum in rupees per maund (37.324kg):

SINDH TYPE:

200 bales, Sanghar at Rs7,300, and 400 bales, Mirpurkhas at Rs7,300 to Rs7,700.

PUNJAB VARIETY:

1,000, 400 bales, Rahimyar Khan and Rajanpur at Rs8,500, 400 and 200 bales, Duniapur and Tibba Sultan at Rs8,000, 148 bales, Haroonabad and 368 bales, Shujaabad at Rs7,900, 476 bales, Sadiqabad at Rs7,800 and 200 bales, Jalalpur at Rs7,950.