KARACHI, Aug 20: Cotton market showed firm trend on Monday as most of the deals in the ready section were finalised Rs50 per maund higher as compared to weekend rate. Phutti rates also recovered Rs50 at Rs1,400 to Rs1,500 per 40 kg after having fallen from the peak level of Rs1,700.
About 10,000 bales from the Sindh and Punjab cotton belts changed hands between Rs3,000 to Rs3,150 depending on the quality of lint in trade, dealers said.
Although the trading was again dominated by the reports of Mealybug attack in some of the areas of the Punjab cotton belt, extensive spraying operations being carried out by farmers to control it or minimise the damage to the standing crop, spinners played safe in an effort to contain prices within the current level, they said.
Prices of lint had declined from Rs3,450 to Rs2,900 per maund last week on ginner selling followed by reports of steady arrivals of phutti into the ginneries and lowering of prices by the growers.
A leading cotton broker Naseem Usman said an imminent price flare-up was halted by official reports that the government would allow duty-free import of medium staple lint from India through Wagah if the pest attack was not controlled in the next two weeks.
Both ginners and spinners played safe awaiting further developments on the supply front in the backdrop of pest attack on the Punjab cotton, he added.
The next two weeks are very crucial as far as local supply of lint is concerned, they said, adding “but it is unclear how the market will behave after import from India is allowed”.
Picking operations of phutti in the southern Punjab and upper Sindh are expected to be resumed by the next couple of days and the pace of arrivals will also have bearing on the market, he said.
Official spot rates were revised upward by Rs50 per maund at Rs2,950 per maund.
The following deals were done in the ready section on Monday.
SINDH VARIETY: 1,000 bales, Sanghar at Rs2,975 to Rs3,000, 200 bales, Sakrand at Rs3,025, 200 bales, Jhole at Rs3,025, 600 bales, Tando Adam also at Rs3,000 and 400 bales, at Rs3,050, 400 bales, Shahdadpur at Rs3,050 and 400 bales at Rs3,000, 400 and 600 bales, Hyderabad and Khipro at Rs2,990 to Rs3,000.
PUNJAB TYPE: 500 bales, Arif Wala at Rs3,100, 500 bales, Burewala and 600 bales, Sahiwal at Rs3,150.
The following are Monday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32” micronair value between 3.8 to 4.9 NCL.
