KARACHI, July 28: Trading on the cotton market on Monday resumed on a bullish note followed by reports of drying up of arrivals of phutti into the ginneries leading to pressure on ready stocks.

As a result stray lots from Burewala, Sahiwal and Chichawatni were done at Rs4,250, signalling the market will maintain bullish tone in the coming sessions.Phutti traded well over Rs2,000 per 40 kg during the last week both in the lower Sindh and central Punjab cotton belts and ginners predict prices could rise further as growers are not inclined to sell below their parity rates owing to higher cost of inputs.

“Together with reports of pest attack in some of the areas amid talk of a short crop, the holding back of phutti by the central Punjab growers has further accentuated the supply situation,” chairman of the Karachi brokers group said.

“The market is steadily slipping into the tight grip of the growers,” he added.

But some ginners attribute the fall in arrivals to early first picking of phutti in the central Punjab cotton belt and expect arrivals will be normal after the second picking operations are resumed.

However, the developing situation on the cotton front reflects that sailing may not be normal for the spinner and the ginner in the coming weeks unless picking operations are resumed in the major crop areas by early September.

An idea of price outlook can be had from the fact that private sector exporters are selling their stocks at Rs4,250 per maund as they claim that it is more profitable to sell to local spinners rather than to foreign buyers at least for the near-term.

Official spot rates were, however, firmly held at the last level of Rs3,900 per maund, although in the ready section most of the deals were done well above them.

The following notable deals were finalised on Monday evening:

PUNJAB TYPE: 400 bales, Chichawatni at Rs4,250, 100 bales, each Burewala and Sahiwal also at Rs4,250 and 600 bales exporter-to-mill, Karachi delivery also at this rate.

The following deals were done on Sunday:

SINDH TYPE: 600 bales, Shahdadpur at Rs4,000 to Rs4,100, 200 bales, each Hyderabad and Tando Adam at Rs4,090 to Rs4,100.

PUNJAB VARIETY: 600 bales, Burewala at Rs4,100 to Rs4,150, 1,000 bales, Pak Pattan, at Rs4,000 to Rs4,100, 400 bales Arifwala and Ghaziabad at Rs4,125, 400, Chichawatni and 200 bales each, Bahawalnagar, Sahiwal, Gaggon, Gojra, Muridwala and Mongi Bangalow at Rs4,100.