KARACHI, Dec 10: Cotton prices on Tuesday tended further higher as spinners resumed their post-Eid holiday buying operations to fill in the supply gaps but ginners appear to be reluctant sellers.

The general perception among the ginners is that lint prices are expected to rise further from the current levels as spinners demand will further expand owing to a steady pick up in world demand for textiles.

The important thing is that both the mills and spinners will have to go a long way to cover their annual consumption needs that could well mean a tremendous pressure on supplies after March next year.

According to official figures, the textile industry has so far purchased about 7 million bales as against their projected annual demand of 1.3m bales by the end of the current year ending Aug 31, 2003.

“Unlike the previous year when spinners had imported 1.238m bales at much cheaper rates to make up the local crop shortfall, it may not be possible during the current season as world rates are much higher as compared to the local ones”, one broker said.

New York cotton futures for the forward March contracts are currently fluctuating between 49 and 53 cents per lb as compared to 33 to 38 cents per lb last year. The March contracts around 53 cents reflects that world cotton will be more expensive during the next couple of months owing to a short crop in the major growing areas.

“The war of wits between the ginner and the spinner appears to be at its peak”, brokers said “incidentally they know how to play their respective cards in typical Pakistani market conditions”.

However, by the time the pressure on supplies will be built-up, growers will be out of the game after having sold their phutti around the current level of Rs910 to Rs930 per 40-kg.

Official spot rates were marked up by Rs25 per maund at Rs2,075 although in the ready section bulk of the business was done well above them depending on quality.

New York Cotton futures on the other hand suffered modest fall of 0.39 and 0.36 cents per lb at 48.72 and 52.69 cents per lb for both the maturing December and the forward March settlements respectively.

Ready offtake was active as till late in the evening about 15,000 bales, all from the Punjab ginneries changed hands

AS UNDER: 1,500 bales, Mehmoodabad at Rs2,085, 2,000 bales, Bahawalpur, 1,000 bales each Sadiqabad, Jalalpur and Khanewal at Rs2,125, 400 bales, Sahiwal at Rs1,970, 200 bales, Muridwala at Rs1,925 and 1,200 bales, D.G.Khan at Rs2,075.