KARACHI, June 24: Some of the forward deals on Tuesday in new crop from the central Punjab were finalised at record Rs4,200 per maund for delivery in July, brokers claimed.

The details of the forward deals, however, could not be transmitted to the Karachi Cotton Association (KCA) for official record. Some spinners claim there is no logic to go that far when the current crop is available around Rs3,850 per maund.

They said the phutti arrivals into ginneries were gaining momentum following surge in picking operations despite warm whether and lint prices should fall from the current higher levels.

“Prices of new crop lint do rise modestly after the stocks of the current crop are fully exhausted,” said a leading spinner. “Mill owners are not that fool to go beyond their export parity levels as they have many sources to bridge the supply gaps”.

What a spinner or miller will do with 200 and odd bales of new crop after buying it at Rs4,200 per maund as the quantity is too small to make his inventory competitive as he has to operate in the foreign markets, he added.

He said speculative forces had been active since the start of the new season and were sending distress signals about prices and supplies to promote certain interests.

“Our own initial crop surveys suggest that it is too early to say something about the size of the crop and future price outlook,” he said.

After having imported 4 million bales to make up the local crop shortfall, spinners and mills are unlikely to buy new crop lint at Rs4,200, some brokers said.

The phutti and lint prices are expected to get normal after the picking operations in the major crop areas are resumed.

New York cotton futures were marked further lower by 0.79 and 0.67 cents per lb at 70.88 and 75.52 cents for both the ruling July and the new crop October settlements, respectively.

But on the other hand local official rates were firmly held unchanged at the previous level of Rs3,800 per maund.

In the ready section, a deal for 4,500 bales, from Khanpur ginneries changed hands at Rs3,850 per maund.