KARACHI, Feb 29: Active trading was again witnessed on the cotton market on Friday as spinners and mills continued to make panic buying amid fears of price flare-up.

Another 20,000 bales changed hands for the second day in a row at Rs3,100 on the lower side and Rs3,400 on the higher side for both inferior and fine lots, respectively.

But it goes to the credit of spinners that they managed to contain an imminent price flare-up based on short supply and lifted a respectable total of fine lots mostly at their export parity levels, floor brokers said.

They said continued increase in New York cotton futures and in turn the world over has made lint more expensive for the end-product-users as the cotton trade has now slipped into the hands of international speculators.

The ruling May contract on the New York cotton market is on the threshold of hitting its new target level of 80 cents per lb, possibly during the current week and if that happens, world prices will increase in sympathy simultaneously, they said.

It was last quoted at the session’s high of 79.33 cents per lb, while the maturing March stayed firm at 78.13. Both showed fresh rise of 1.28 and 1.40 cents per lb, respectively.

Market sources said the combined arrival figures of phutti for the month of February are due during the next couple of sessions and they are expected to set the future market direction.

But one thing is sure that spinners and mills are far behind their annual consumption needs, which could have further upward pressure on the ruling prices by the next week, they said.

Official spot rates were again held unchanged at Rs3.200 but most of the deals were done well above them.

The following are some of the important deals, which were gone through on late Friday evening:

SINDH TYPE: 1,600 bales, Dadu at Rs3,250, 400 bales, Mirpurkhas at Rs3,300 and 400 bales, Gothki at 3,350.