KARACHI: With rising demand in the face of restricted phutti (seed cotton) arrivals due to heavy rains — particularly from the lower Sindh region — cotton prices moved higher on Wednesday.
Though phutti prices moved lower owing to quality constraints caused by high moisture content, lint rates moved up on strong demand, brokers said, adding that trading remained subdued, however.They said the Punjab variety phutti was being quoted between Rs2,800 to Rs3,200 per 40kg while Sindh’s produce at Rs2,700 to Rs3,100.
Reports indicate that heavy rains have raised fears of pest attack and damage to the crop due to stagnant water in the fields, especially in lower Sindh.
However, rains could be beneficial for the crop in some of the growing areas as it could help increase yield.
On the global front most of the markets were steady, with the New York cotton moving higher after receiving a setback due to fall in dollar against other major currencies of the world.
Meanwhile in India’s Gujarat region, growers are re-sowing cotton in many parts after rain damaged the crop.
The Karachi Cotton Association (KCA) revised up its spot rates by Rs100 per maund.
The following deals were reported to have changed hands on the ready counter: 600 bales, Shahdadpur, at Rs6,300 to Rs6,325; 200 bales, Mirpurkhas, at Rs6,300; 200 bales, Jamsabad, at Rs6,350; 200 bales, Golarchi, at Rs6,325; 100 bales, Chichawatni, at Rs6,500; and 100 bales, Burewala, at Rs6,520.
Published in Dawn, July 20th, 2017
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