KARACHI, Aug 2: The cotton market on Tuesday maintained a firm trend as reports of fresh rain during the last two days have brightened the prospects of new crop in the Sindh cotton belt, ginners said. But on the other hand, picking operations of phutti in the lower Sindh cotton belt, where the crop matures early owing to sowing in February or early March, will be delayed for another week or so if there is no fresh rain, they said.
The picking operations in rain-soaked fields are also suspended for quality reasons as wet ground and moisture damage the fibre staple of cotton and if there are more rains it turns yellowish, they added.
Local brokers said arrivals of phutti, which were steadily picking up before the current spell of monsoon had almost dried up, are creating some operational problems for the ginners.
Normal picking operations are expected to resume after about a week, which could well mean that pressure on new crop supplies will mount, which in turn could push prices further higher at around Rs2,400 plus per maund.
New crop lots before the rain were changing hands at around Rs2,350 per maund despite slow arrivals from the lower Sindh ginners, but rates were well below TCP reference prices in its current auction at Rs2,425 and Rs2,450 but there were not many who were willing to revise their bid prices as advised by the TCP.
As a result, spot deals in the new crop for couple of lots were finalized for ready delivery, although there are reports of some forward buying by the local spinners, they said. Meanwhile, reports coming from the lower Sindh cotton belt indicate that Punjab’s ginners are now out of the Sindh phutti market after some of the local ginners have resumed their seasonal operations.
New York cotton futures suffered fresh modest decline of 0.29 and 0.16 cents at 50.70 and 52.32 cents per lb, for both the ruling October and forward December contracts, respectively.
But on the other hand, official spot rates did not show much change and were quoted at the overnight level of Rs2,350 per maund. In the ready section, 200 bales of new crop from Sanghar changed hands at Rs2,400 per maund.
