KARACHI, March 5: Bullish trend was again witnessed on the cotton market on Wednesday as a new price flare-up on the New York future market triggered fresh panic buying by spinners and mills.

The NY cotton futures for the forward July delivery on Wednesday hit new peak level of 90.52 cents per lb, sending shock waves the world over that in future lint could be more expensive, said a leading ginner.

Limit gains of four cents per lb, followed by persistent fund- buying for the fourth session in a row in both the ruling May and forward July future contracts at 88.86 and 90.52, indicate that prices may be heading to decades highs of well over 100 cents per lb in the coming sessions, he added.

“Ginners who are holding bulk of the unsold stock of 1.463m bales are not inclined to sell at the current spinner offered prices and held on to their positions anticipating a further rise in prices, dealers said.

The other negative factor, which could have added to the current price flare-up, is that the Indian exporters of lint are reportedly reluctant to honour their export contracts signed with local spinners owing to sharp increase in prices and that they have stopped shipments, industry sources said.

The litigation on the issue if mutual discussions did not settle the price increase could further accentuate the supply situation and there may a fresh increase in prices, spinners fear.

But there is no matching sale from ginners who held on to their unsold positions, totaling about 1.463m bales, hoping that there may be a fresh increase in prices in the coming sessions.

Most of the deals were, therefore, finalised at Rs3,500 per maund for fine lots as ginners appear to be pretty optimistic about fresh increase in prices owing to some negative developments on the import front, floor brokers said.

Official spot rates were again revised upward by Rs25 for average quality lint, but in the ready section prices were ruling much higher.

Mills ready off-take was modest as compared to last couple of sessions’ panic-buying and totaled about 10,000 bales as under: 2,200 bales, Tharo Shah, 1,000 bales, Shahdadpur and 400 bales, Hala at Rs3,500; 3,000 bales, Moro at Rs3,350 to Rs3,400, and 1,500 bales, some other stations at Rs3,450 to Rs3,500.