KARACHI, Feb 10: Active trading was again witnessed on the cotton market on Thursday as spinners continued to build up long positions at the current levels, fearing further increase in prices.

There was a near-panic among the spinners and mills about the supplies as the current rain has upset their priorities, both in terms of quality and quantity of fine lots, brokers said.

"There is whispering in the cotton corridors that leading spinners are thinking of import of fine lots to fill the possible gap if the TCP failed to oblige them," they said.

Dealers said the current spell of heavy rain in major cotton areas, including upper Sindh and southern Punjab, had altogether changed the nearby supply outlook amid fears of damage to both ginned lint and phutti still lying in some of the ginneries because ginners had to suspend operations.

"Ginning of rain-soaked phutti damages the quality of lint," says one ginner, adding: "We have to await clear weather before resuming operations."

Beyond them, the spinners already facing the problem of fine lint are worried that the quality of unginned phutti may have been damaged. That is perhaps why they are indulging in panic buying in an apparent bid to grab the floating stock stored in the city godowns or elsewhere in Punjab stations.

The other worry of the spinners and mills is that immediate delivery against the previously signed deals may be delayed because of weather conditions and fears of fresh rain, market sources said.

As a result, official spot rates were upped by Rs25 per maund at Rs2,150 per maund, although most of the deals were done well above them.

New York cotton futures also staged a modest recovery from the previous lows and recovered 0.37 and 0.16 cents per lb at 43.07 and 44.28 for both ruling March and forward May contracts.

Ready offtake was active totalling 15,000 bales, the following being some of the notable deals:

SINDH TYPE: 1,200 bales, Sanghar at Rs2,025 to Rs2,075; and 1,000 bales, upper Sindh at Rs2,200.

PUNJAB VARIETY: 6,000 bales, Bahawalpur at Rs2,200; 1,000 bales, Rahimyar Khan, 2,000 bales, Vehari, 1,400 bales, Jampur and 400 bales, Sadiqabad at Rs2,200; and 500 bales, Kabirwala at Rs2,175.