KARACHI, Jan 20: Cotton prices on Thursday rose further higher as spinners and mills intensified their covering operations against forward sales followed by reports of 1.4m bales fall in the latest arrival figures of phutti into the ginneries.

Some of the deals in the ready section were done as higher as Rs10,600 per maund as leading mills were not inclined to take risks on the supply front to meet their export obligations, floor brokers said.

“Lint prices are steadily rising to their previous all-time peak level of Rs11,000 per maund as fears of short supply and an imminent fresh price flare-up haunted spinners and mills,” they said.

The other price supporting factor was fresh rise in the New York cotton futures which surged by another 3.50 and 2.94 cents per lb at 148.94 and 143.31 cents for both the maturing March and the ruling May contracts respectively, they added.

Spinners said the developing situation on the cotton front indicate that prices could rise further as global demand would outstrip the supplies and the consequent rise in prices.

According to latest figures released by the Pakistan Cotton Ginners Association, the phutti arrivals into the ginneries may not touch the high mark of 13m bales but 12.5m bales could be a safe guess, market sources said.

The official spot rates were revised upward by Rs100 at Rs10,000 per maund but in the ready section fine lots were traded at well higher rates.

The following are some of the deals reported in the ready section late on Thursday evening.

SINDH TYPE: 400 bales, Ghotki at Rs10,200, 400 bales, Tando Adam at Rs10,000, 1,200 bales, Nawabshah at Rs9,800 to Rs9,975, 1,200 bales, Kotri at Rs9,800, 400 bales, Sakrand at Rs9,800 and 400 bales, Mirpurkhas at Rs9,650.

PUNJAB VARIETY: 1,000 bales, Khanpur at Rs10,600 on credit, 1,000 bales, Gaggon and 400 bales, Alipur at Rs10,500, 1,000 bales each, Rajanpur, Tounsa Sharif, Layyah, Khanewal and Faqirwali at Rs10,000, 800 bales, Mian Wali at Rs10,100 to Rs10,200, 200 and 400 bales, Baserah, at Rs10,200 and 600 bales, Sadiqabad at Rs10,400 to Rs10,500.