September 25, 2007	Tuesday	Ramazan 12, 1428

KARACHI, Sept 24: Cotton prices on Monday edged further higher by Rs25 per maund followed by reports of rain in various parts of cotton belt of Sindh and Punjab, which interrupted arrivals of phutti into the ginneries.

Later in the evening about 2,000, 1,000 bales each from Shahdadpur and Tando Adam changed hands at Rs3,000, cotton consultant Naseem Usman said and phutti was sold at Rs1,550 per 40 kg.

Floor brokers said the rain at this time of the cotton season is harmful for the standing crop as rain water damages the quality of phutti and its staple length in addition to delaying picking operations.

Although the extent of the damage owing to rain is hard to assess at this stage, one thing is clear that it may be for other crops but certainly not for the cotton, they added.

Delay in picking operations depending on the extent of suspension also leads to increase in prices of both phutti and lint until the arrivals of phutti get normal, ginners said.

The Rs50 increase during the last two sessions reflects that rain had caused the price flare-up, otherwise the market was ruling orderly which suited to both the sellers and the buyers.

“No one could predict about the future price outlook but one thing is pretty clear that the developing situation both on the local and foreign fronts signals a fresh rise in prices,” said a leading broker basing his assumption on the higher phutti prices.He said phutti prices have again risen to around Rs1,500 per 40 kg both in Sindh and Punjab cotton belts and the increase will be passed on to the ruling lint prices.

Official spot rates were held unchanged at the last level of Rs2,850 but in the ready section most of the deals were done Rs100 above them.

Ready off-take was relatively slow because of higher asking prices and totalled about 10,000 bales as under:

SINDH VARIETY: 1,000 bales each Shahdadpur, Tando Adam, Sanghar, 600 bales, Khipro and 800 bales, Mirpurkhas all at Rs2,950 to Rs2,975.

PUNJAB TYPE: 600 bales, Burewala at Rs2.950 to Rs2,975, 400 bales, each Chichawatni, Bahawalnagar at Rs2,950 and 400 bales, Khanewal at Rs2,975.