KARACHI, Jan 23: Panic buying continued on the cotton market on Friday as spinners and mills were not inclined to take even a technical breather amid fears of further increase in prices.

As a result, another 30,000 bales changed hands at a bit higher rates as fine lots, both from the upper Sindh and the southern Punjab ginneries, were again traded higher by Rs50 per maund at Rs3,400, dealers said.

It was another big-lot session as leading spinners and mills tried to grab the floating stock of fine lots before ginners opted for the TCP tender, they said.

Cotton analysts said the TCP may not join the race of the current price flare-up as ruling prices are well above its mandated procurement rate as well export parity level.

Moreover, the TCP is not inclined to make problems for the textile industry, which earns more than 60 per cent of the total foreign exchange, they said, adding “it stands for fair prices for all those associated with the cotton trade.”

But spinners were not inclined to stay on the sidelines and continued to make panic buying as size of the new crop is clear and said to be well below the annual demand of the industry.

The current rebound staged by the New York cotton futures also worried them, which will make imports more expensive in the coming months, having a negative fallout on export parity levels of textiles, they added.

New York cotton futures on Friday were quoted higher by 1.70 and 1,69 cents per lb at 48.93 and 49.48 for both the ruling March and the December contracts, respectively.

Local official rates on the other hand were firmly held at the last level of Rs3,300 per muand.

The following are some of the notable deals done in the ready section on Friday:

SINDH TYPE: 2,000 bales, Dharki at Rs3,400, 1,200 bales, Pano Akil at 3,280, 1,000 bales, Sanghar at 3,150 to 3,200, 1,400 and 2,000 bales, Shahdapur and 1,400 bales, Hala at 3,200.

PUNJAB VARIETY: 3,800 bales, Khanpur at Rs3,295 to 3,400, 600 bales, Mian Channu at 3,400, 1,400 bales, Jalalpur and 1,000 bales, Bahwalpur at 3,300 to 3,400, 1,000 bales, Shujabad and 400 bales, each Ghazi Ghat and Liaquatpur and Ahmedpur East at 3,300, 400 bales, each Sadiqabad and Rahimyar Khan at 3,275, and 400 bales, Burewala at 3,200.