KARACHI, Aug 16: The cotton prices closed the weekend session on a firm note owing to the weakness of the rupee and analysts attributed the price flare-up to strong presence of the private sector exporters in the market.

Some of the fine types were sold around Rs4,300 per maund as spinners continued to make panic buying fearing further increase in prices as exporters will remain active buyers until the rupee recovers from the current record lows and dollar weakens, market sources said.

The private sector exporters, who had so far made forward sales of lint to a number of countries, including Bangladesh, Indonesia and India, are covering their forward positions at the current rates as the weak rupee against the strong dollar ensures substantial profit margins on the export front, they said.

Under the trade policy export and import of the lint cotton is allowed without ascertaining the size of the production, which could create crisis-like conditions on the supply front as witnessed last season, they added.During 90s, export of lint was not allowed after the size of the crop is known by the end December and spinners and mills, as first buyers, have covered the forward positions against textile exports, said a leading spinner adding that is why prices stay higher.

Meanwhile, news from the New York Cotton Exchange were terribly bearish as both the contracts fell by limit fall on active speculative selling triggered by reports of higher US crop projections.

Both the ruling October and the forward December settlements were marked down by 2.02 and 2.40 cents per lb at 65.07 and 67.08, respectively.

Spinners said any further fall in prices will make imports more competitive and will have negative impact on the current local higher prices during the next couple of sessions.

Official spot rates were revised upward by Rs75 at Rs4,200 per maund, although most of the deals were done at Rs25 to Rs100 higher depending on the quality of lint.

Mill ready off-take was on the higher side totaling about 20,000 bales, the following being some of the notable deals:

SINDH TYPE: 1,000, 1,200 bales, Sanghar and Shahdadpur at Rs4,225 to Rs4,250, 1,600 bales, Tando Adam and 1,000 bales Hyderabad at Rs4,225 to Rs4,240, 200 bales, Shahpur Chakar at Rs4,225 and 800 bales, Mirpurkhas at Rs4,200 to Rs4,225.

PUNJAB VARIETY: 800 bales Pak Pattan, at Rs4,250 to Rs4,275, 400 bales, Arifwala and 200 bales each Gojra and Vehari at Rs4,250, 1,000 bales, Burewala at Rs4,225 to Rs4,250, and 1,600 bales Sahiwal at Rs4,250 to Rs4,300.