KARACHI, July 9: Forward trading in new crop was resumed on the cotton market on Tuesday as ginners both from the lower Sindh and the southern Punjab sold 600 bales, signalling steady increase in arrivals of phutti into the ginneries.

However, what is surprising is that most of the deals were finalized between Rs1,900 and Rs1,950 per maund, far below the prices being rumoured a couple of days back around Rs2,300 per maund.

“Spinners who were worried over the snap rise in prices are now a bit happy as they have found an alternate source of supply in case the current crop show further rise,” says a broker.

Although spinners have a fair stock position after having imported over a million bales and buying about 9.7m bales from the local market, they are building up long positions in anticipation of higher exports and predictions of a lower world crop and pressure on prices.

Floor brokers said the local cotton situation had entered an interesting phase as despite higher production, the phenomenon of short supplies continues to haunt spinners in the shape of higher prices.

The next couple of sessions will show whether or not the supplies of the new crop will be regular or depend on the arrivals of phutti into the ginneries and the performance of pickers.

Unlike previous seasons, a ginner from D.G. Khan joined his counterparts from the lower Sindh and made a maiden deal for 200 bales at Rs1,950 per maund delivery next month along with the Sindh ginners.

Owing to climatic conditions, the sowing of cotton is generally done between May 15 and June 15, claimed to be ideal for a healthy crop. But D.G. Khan growers have shown that an early sowing could also be made in this area.

Official spot rates remained pegged at the overnight level of Rs1,850, but on the other hand New York cotton futures suffered sharp setback of 1.30 and 1.33 cents per lb at 44.75 and 45.72 cents per lb for both the maturing July and the ruling new crop October settlements, respectively.

Ready offtake was active as till late in the evening about 5,000 bales changed hands as under:

NEW CROP: 100 bales of Sultanabad at Rs1,900 and 100 bales at Rs1,925; 200 bales, Mirpurkhas at Rs1,925; and 200 bales, D.G. Khan at Rs1,950.