KARACHI, Nov 19: Cotton market on Monday remained in the tight grip of leading growers who reportedly are holding back their stocks of phutti to push prices further higher.

Phutti prices in the Punjab cotton belt have almost stabilized around Rs1,000 per maund but growers seems to be in a mood to push them to previous record of Rs1,300.

“Growers have not totally stopped delivery of phutti to the ginneries but they have certainly curtailed the size of daily arrivals to keep prices within the current range”, local brokers and ginners claim.

While there is no official word on the developing cotton situation and the consequent price flare-up amid conflicting reports about the size of the crop, speculative forces continue to add fire to the fuel after spreading rumours.

But cotton analysts claim the increase in the local prices may have some other sympathetic factors in addition to rumour of a short crop, notable among them being grand rebound staged by the New York cotton futures in the recent past.

“After having fallen to 25 year low of 28 cents per lb, the New York cotton futures now have recovered to over 34 cents per lb, which in turn has bullish impact elsewhere including Pakistan”, they added.

Although exporters are silent since the Afghan war owing to fall in import enquiries from their traditional trading partners, are preparing to swing back in the export trade after a distinct change in the world cotton outlook.

There is a general perception that foreign buyers will be back in the market after the Afghan war ends and a stable government is formed in Kabul, dealers said.

During the couple of weeks, leading exporters were conspicuous by the absence from the market owing to falling import orders amid fears of disruption in shipments because of continued US bombing on Afghanistan.

Official spot rates were raised further higher by Rs50 per maund by the rate committee, although in physical trading most of the deals in Punjab variety were done at much higher prices.

Ready offtake was active as till late in the evening about 10,000 bales changed hands as under:

SINDH TYPE: 200 bales, Kandero at Rs1,950, 500 bales, Shahpur Chakker at Rs1,850, 4,000 bales, Nawabshah at Rs1,900, 500 bales, Moro at Rs1,950 and 2,500 bales, K-68 at Rs2,100 to Rs2,150.

PUNJAB VARIETY: 1,000 bales, Bahawalpur at Rs2,100.