KARACHI, Feb 17: Trading on the cotton market on Thursday resumed on a sluggish note as spinners and mills kept to the sideline apparently watching developments on the global market in the backdrop of fresh sharp rise of seven cents per lb in the future contract prices.

Later in the evening, the maturing March was quoted at 204.45 cents per lb, breaching through the barrier of 200 cents and analysts said the price flare-up would continue in the coming sessions also.

Analysts said as was widely speculated New York cotton futures are close to hit an all-time high mark of 200 cents per lb as consumers around the world are indulging in panic buying amid fears of fresh pressure on ready supplies in the coming weeks.

Both the maturing March and the forward May contracts on Thursday were quoted at their new career-best level of 197.02 and 194.93 cents per lb, respectively. Their finish at the session’s high reflects that their next target is 200 cents per lb or beyond it as the supply position indicates, they said.

The current level is billed so far the highest ever, which has jolted the world markets and consumers did not know how to react to the changing supply condition, they said.

They said short crop in the major producers, including Pakistan and China and bumper crop in India and the US has created monopoly conditions leading to speculative price flare-up around the world.

However, the local spinners and mills were not inclined to chase prices beyond their export parity levels and kept to the sidelines amid fears that many textile units may close down if prices stayed around the current peak levels, market sources said.

Official spot rates were quoted higher by Rs300 per maund at Rs11,800, but some lots in the ready section were traded above them.

Mill ready off-take was light owing to higher prices and only 1,000 bales, from Sarhari and 400 bales from Salehpat changed hands at Rs12,500 per maund.