KARACHI, Dec 13: Cotton prices on Tuesday tended further higher by Rs25 per maund as spinners and mills covered positions against their forward sales of cotton yarn and cloth.

In the ready section, about 20,000 bales changed hands at a uniform rate of Rs2,425 per maund both for upper Sindh and southern Punjab fine lots amid a briskly traded session, brokers said.

The spinners seem to have found the cue of a possible crop shortfall through their private surveys and opted for panic buying. But the ginners were not in an obliging mood and raised their asking prices though modestly, they said.

By now the ginners also have a fair idea of the total crop and seeing through the grower eye most of whom are not inclined to hold on to their stocks for a better price. The ball is now in part in the ginner court.

“The consensus total crop figure appears to be 12m bales plus,” says a leading cotton analyst. “Together with the imports and carryover stocks and about half-a-million unsold bales with the TCP, there is nothing to worry on the supply front.”

The heating of the world market apparently on year-end buying did worry the spinners and mills but they may not have to opt for fresh imports from other countries, he said.

But it is not clear how far the current price flare-up would go after the final crop figure is out is anybody’s guess, prices are expected to be guided by supply and demand factors, some others said.

It was in this background that official spot rates were upped by Rs25 per maund, although most of the deals in the ready section were done above them.

New York cotton futures showed modest rise of 0.69 and 0.58 cents at 53.41 cents per lb for the newcomer March contract and 54 cents per lb for the forward May delivery, respectively.

Mill buying in the ready section was higher totalling 20,000 bales as under:

SINDH VARIETY: 1,000 bales, each Gothki and Salehpat, 1,200 bales, Rohri, 600 bales, Khairpur, 800 bales, Mirpur Mathelo and Pano Aqil at Rs2.425.

PUNJAB TYPE: 2,000 bales, each Rahimyar Khan, Ahmedpur East, 1,000 bales, Alipur, 600 bales, Chingoth at Rs2,425; 1,800 bales, Jalalpur at Rs2,400 to Rs2,425; 1,400 bales, Lodhran at Rs2,415 to Rs2,425; 800 bales, Shujabad at Rs2,415; 400 bales, Laiyah and 600 bales, Gojra at Rs2,350; and 1,600 bales, Sadiqabad at Rs2,415.