MULTAN: Influenced by the increasing price trend in international markets, cotton trading picked up pace on Tuesday as spinners remained active to meet their near-future requirements.

However, the Karachi Cotton Association kept its spot rate unchanged at Rs7,400. Increase in prices of phutti (seed cotton) from Sindh was also recorded.

Experts said an increase of about seven per cent in lint prices was witnessed in all major cotton markets including India, USA and China. “An increase of 3.5 cents in prices at New York future market was recorded while the market was yet to open.

There are chances that the commodity will reach to 4 cent till closing time,” an analyst said. “This is an extraordinary increase that will definitely put an impact on domestic market which is currently slow due to Ramazan and prevailing political situation as the elections are going to be held soon,” he added.

Market sources are also forecasting that the new season’s cotton prices will jump to Rs10,000.

However, there is confusion prevailing in the yarn market where dealers are not ready to disclose prices, thereby slowing down the yarn market.

Meanwhile, farmers and ginners are satisfied as there are predictions that phutti prices will reach Rs4,000 once picking begins in Punjab.

A future deal of phutti, with a delivery date between June 20-July 10, took place in Shahdadpur, Sindh at Rs4,000. The price of 40 kilogram phutti in Gharo was at Rs3,750; Badin at Rs3,750; and Thatta at Rs3,765.

The following deals were reported to have changed hands on ready counter: 400 bales, Rahim Yar Khan, at Rs7,600; 400 bales, Khanpur, at Rs7,500; and 200 bales, Vehari, at Rs6,700.

Published in Dawn, May 30th, 2018