KARACHI, Dec 1: Cotton prices on Thursday showed a modest increase of Rs20 per maund as spinners and mills continued to make panic buying ahead of arrival figures of phutti for the fortnight ending Nov 30. “The crop may be terribly short as is reflected by hasty covering purchases being made by the spinners and mills below or at around Rs2,400 per maund,” brokers said. ”The interesting feature is that prices are stable and in line with the mill export parity levels.”

Entertaining an idea of higher unsold stock in the last fortnight also, ginners too are not inclined to hold long positions fearing further decline in prices, they said.

But on the other hand, phutti rates eased by Rs25 from the current higher level of Rs1,100 per 40 kg, followed by reports of import of 2.5m bales of lint from various sources to meet any crop shortfall and to make a buffer stock for the next year.

Trading activity remained fairly brisk after Wednesday’s relative lull as about 25,000 bales from Punjab ginneries changed hands mostly below Rs2,400 per maund, dealers said.

The interesting feature was that the ginners appear to be in no mood to resist spinner overture and generally played on their tone, obliging them at their offered prices, they added.

Sindh, including the upper Sindh, lint was again neglected as quality war among the spinners remained at peak levels but without matching an increase in prices.

According to market sources, Punjab growers managed to produce a better quality phutti leading to contamination-free lint followed by spinner scramble to grab the floating stock, market sources said.

While local official rates were revised upward, New York cotton futures showed a divergent trend. While the ruling December contract rose by 0.21 cents at 49.19, forward March fell by 0.3 cents at 52.28 on late selling.

Mill ready offtake was on the higher side, the following being some of the notable deals: 1,000 bales, Rajanpur at Rs2,385; 2,000 bales, Sadiqabad at Rs2,380 to Rs2,400; 1,000 bales, Yazman, 1,200 bales, Lodhran, 800 bales each Faqirwali and Alipur, 1,000 bales, Jahania, 1,200 bales, Bahawalpur and 600 bales, Nurpur at Rs2,375; 1,000 bales, Haroonabad and 400 bales, DG Khan at Rs2,350; 2,000 bales, Sardar Lund, 2,400 bales, Ahmedpur East, 3,000 bales, Rahimyar Khan at Rs2,375 to Rs2,400; and 1,600 bales, Gothki at Rs2,400.