KARACHI, Jan 14: Cotton prices were quoted higher on Wednesday by Rs75 per maund on panic mill buying amid reports of a short crop, according to private surveys conducted by spinners and other related agencies.

About 20,000 bales, mostly big lots, changed hands and some brokers claimed many buying offers remained unsatisfied as sellers raised their asking prices beyond the export parity level, some brokers said.

The panic buying reflects that the cotton trade may be heading for a crisis-like situation based on pressure on supplies in the coming weeks and higher prices, they added.

It appears to be a quality war among leading spinners and mills who need fine lots to spin higher counts of cotton yarn for fine textiles for their export outlets, analysts said.

They said this perception is reinforced by that fact that fine lots, notably a big lot of 7,000 bales, were sold at Rs3,400 per maund, while inferior types were available at an average rate of Rs3,200.

Bulk of the support remained confined to the Punjab lint from the southern Punjab cotton belt followed by stray lots from the upper Sindh ginneries.

The price flare ahead of the fortnightly arrival figures reflects that both the spinners and the mills by now have a fair idea of the crop, market sources said.

But reports from the world markets, including New York cotton market were bearish as both contracts remained under pressure for the second session in a row and shed 0.44 and 0.28 cents per lb at 46.23 and 47.09 for both the ruling March and the forward May, respectively.

Official spot rates revised upward by Rs75 per maund at Rs3,275 but some of the fine lots were traded well above them.

Mills ready off-take was maintained on the higher as till late in the evening as about 20,000 bales changed hands as under:

SINDH TYPE: 3,000 bales, upper Sindh at Rs3,300 to Rs3,375, 1,400 bales, Khairpur at Rs3,150, 600 bales, Mirpurkhas at Rs3,150 to Rs3,160, and 800 bales, Sultanabad at Rs3,110.

PUNJAB VARIETY: 7,000 and 3,200 bales, Kabirwala and Mian Channu at Rs3,400, 800 bales, Liaquatpur at Rs3,275, 800 bales, Shujabad at Rs3,300, 400 bales, Bahawalpur at Rs3,280, 3,000, and 200 each Khanewal, Mongi Bungalow and Rahimyar Khan at Rs3,200, and 400 bales, DG Khan at Rs3,175.