KARACHI: Trading on the cotton market was highlighted by two deals for new crop which transpired at Rs8,100 per maund on Tuesday. Phutti (seed cotton) prices for new crop also opened at higher rates.

According to market sources, two deals of 400 bales from Tando Adam and 200 bales from Shahdadpur were done at Rs8,100 per maund – fairly higher than last season’s opening rates.

Phutti prices were also quoted between Rs3,900 to Rs4,000 per 40kg for both Sindh and Punjab varieties.

Several ginning units have started operating in Sindh. One unit in Haroonabad, Punjab has also partially started functioning.

It is being estimated that in coming days more ginning units will be functional.

Although shortage of irrigation water in lower Sindh continues but areas around Nawabshah are meeting the water requirement though tube wells. However, there is a greater possibility that water flow will improve greatly in coming days, brokers said.

In Punjab reports suggested that cotton sowing has been quite encouraging and intermittent rains have greatly helped the crop at its initial stages. Cotton production in the province is expected to be high if there is no pest attack.

On the global front, cotton prices have started reeling back after touching peak high level in recent past. Indian cotton prices have also come under correction after touching peak high level at Rs50,000 per candy (356 kg) on strong demand from China.

Similarly, New York and Chinese cotton both moved lower as tensions are growing between the United States and China.

The official spot rates of Karachi Cotton Association (KCA) stood unchanged at Rs7,600 per maund.

Meanwhile, two deals from Tando Adam and Shahdadpur were privately reported by brokers have materialised late in the evening.

Published in Dawn, June 20th, 2018