KARACHI: Cotton prices remained firm on Monday as buyers indulged in short covering to meet their immediate cotton needs. Meanwhile, slow arrival of phutti (seed cotton) continues to impact trading volume.
According to market sources cotton picking remained slow for the second consecutive week due to hot weather in Sindh and Punjab, affecting phutti arrival.
There were reports that due to high temperature the growth of cotton plants has been affected.
The Pakistan Central Cotton Committee (PCCC) report suggests that recent rains have damaged cotton quality in lower Sindh. Due to poor quality, growers are getting lesser price for seed cotton.
Besides, Pink Bollworm incidence has also been reported in lower Sindh.
In upper Sindh, flower shedding has been reported due to strong winds.
In Punjab, Mealy Bug, Army Worm, White Fly, and Pink Bollworm attacks have been worrying growers — with the later two being reported at above economic threshold level.
Shortage of phutti pushed prices higher both in Sindh and Punjab, with the former being quoted in the range of Rs2,800-3,000 and later between Rs2,800-3,100 per maund.
However, spinners were not ready to pay more for cotton and tried to finalise their deals at previous prices ranging Rs6,200 to Rs6,300 per maund. This put ginners in a difficult situation since they had purchased phutti at higher prices and were finding it difficult to sell it at the new prices.
Most of the leading world cotton markets remained firm, with no worth mentioning developments taking place.
The Karachi Cotton Association (KCA) spot rates were unchanged at weekend level.
The following major deals were reported to have changed hands on ready counter: 1,000 bales, Tando Adam, at Rs5,950 to Rs6,000; 2,000 bales, Shahdadpur, at Rs6,900 to Rs6,050; 2,000 bales, Nawabshah, at Rs6,125to Rs6,150; 5,000 bales, Khairpur, at Rs6,200; 2,000 bales, Rohri, at Rs6,200; 1,600 bales, Saleh Pat, at Rs6,200; 800 bales form Jalalpur, at Rs6,250 to Rs6,300; 800 bales, Bahawalpur, at Rs6,200; 1,200 bales, Dera Ghazi Khan, at Rs6,200; 1,400 bales, Fort Abbas, at Rs6,200; 1,000 bales, Layyah, at Rs6,200 to Rs6,250; 2,000 bales, Mianwali, at Rs6,200 to Rs6,250; 800 bales, Burewala, at Rs6,225; and 800 bales Bahawalnagar, at Rs6,200.
Published in Dawn, September 26th, 2017
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