KARACHI, March 13: Cotton prices rose further on Wednesday as ginners held on to their positions firmly on the perception that spinners still need over a million bales to see the season through.

Prices are, therefore, progressively rising to the early season average higher level of Rs2,000 per maund, with the supply and demand factors being the major settling force behind the current market trend.

But local brokers say prices at best could equal the current offered price of Rs1,855 per maund and to think beyond at this level appears to be speculative.

Lint prices have already risen by Rs375 per maund over the last couple of weeks after having fallen to as low as Rs1,400 as spinners are buyers for quality lots at Rs1,775, they added.

Spinners, however, think otherwise. The mill demand for quality lots is still there but to say that prices are heading for a big flare-up may not be correct.

They said spinners have made forward deals for half a million bales after the local prices rose sharply and there was a near-slump on the world markets, and about a half of which has already arrived and the balance is on its way.

So there will be no pressure on the ready supplies and they could stay away if prices rose above their export parity levels, they added.

It was perhaps in this background that prices are rising by Rs25 per maund depending on the mill demand and panic buying by those spinners who hold short ready positions.

However, no one could deny the fact that the strong presence of the Trading Corporation of Pakistan (TCP) as a second buyer may not allow any downward revision from the current levels and the future outlook appears a bit bullish.

Some of the leading exporters were also in the market and they are purchasing inferior lots between Rs1,460 and Rs1,525 against their firm orders and are not inclined to join the race with the spinners, dealers said.

Official spot rates remained firm in line with the ready market where a big deal was done at Rs1,775 per maund.

Ready business was relatively slow as a section of leading spinners took a breather, totalling about 6,000 bales as under:

SINDH VARIETY: 400 bales, Shahdadpur at Rs1,675, 376 bales, at Rs1,650, 1,500 bales, at Rs1,525, 400 bales, Tando Adam at Rs1,460, 400 bales, Sarari at Rs1,690, 600 bales, Bucheri at Rs1,690 and 400 bales from some other stations also at the same rate.

PUNJAB TYPE: 1,000 bales, Bagho Bahar at Rs1,775.