KARACHI: Cotton prices soared on Tuesday on rising concern over report that Indian exporters have canceHed orders and postponed some shipments by up to a month after a supply shortage pushed up local prices.

The fast depleting cotton stocks with ginners and shortage of quality cotton also triggered strong buying from small millers who are running short of cotton stocks.

Moreover, the soaring cotton prices in leading world markets, including New York and China, also induced sentiment. The New York cotton closed 1.25 US cents higher and touched a seasonal high of 79.05 cents per lb.

Floor brokers said that reports of cancellation of export contracts by Indian traders after a rise in cotton prices panicked and dismayed local spinners who were heavily depending on shipments from across the border.

On the other hand,unsold cotton stocks with ginners have come down to 700,000 bales only, whereas the next season was around five months away and the industry has to meet its cotton consumption demand, brokers said.

The salient feature of today`s trading was that cotton prices touched peak level of the current season at Rs7,125 per maund (around 37 kilograms) and most of the deals were finalised around Rs7,000, they added. However, the Karachi Cotton Association left its spot rates steady at overnight level. Major deals on the ready counter were: 600 bales from Mirpurkhas at Rs5,800 to Rs5,900,1,000 bales from Ghotki at Rs5,950 to Rs7,000, 400 bales from Mian Channu at Rs6,500, 1,000 bales from Fort Abbas at Rs6,800 to Rs6,850, 800 bales from Haroonabad at Rs6,800 to Rs7,000, 600 bales from Mailsi at Rs6,950, 4,000 bales from Sadigabad at Rs6,950 to Rs7,000, 1,000 bales from Rahimyar Khan at Rs7,000 and 1,400 bales from Jalalpur at Rs7,100 to Rs7,125.