KARACHI: Strong demand for new cotton crop pushed prices on Friday to a seasonal high level of Rs8,100.

However, trading activity could not expand and remained restricted due to slow supply of phutti (seed cotton).

Although the quality of cotton was initially normal, it has now deteriorated as supply of phutti from lower Sindh began.

According to market sources, cotton coming from lower Sindh is of poor in quality. Shortage of irrigation water and excessive heat affected the growth of cotton plants, eventually restricting growth of staple. Also, incidents of yellow spots are also being reported.

So far around 5,000 to 6,000 bales have reached market from new crop cotton. The demand continues to rise and around 1,200 bales deals were reported to have transpired today.

Strong demand for cotton from spinners kept prices between Rs8050 to Rs8100 per maund. Prices for Sindh variety phutti also remained on the higher side in the range of Rs3,800 to Rs4,150 per 40 kg. Punjab quality was being quoted from Rs3,700 to Rs3,900 per 40kg.

The world leading cotton markets remained mixed due to rising tensions between the US and other countries including China and India over tariffs.

The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs7,500 per maund.

Published in Dawn, June 23rd, 2018