KARACHI: Listless conditions prevailed on the cotton market on Saturday owing to extremely slow arrival of phutti (seed cotton) and high rates being demanded by ginners.

Ginners — who have accumulated some phutti during Eidul Fitr holidays — ran into oversold position whereas spinners are keen to get hold of any quantity of new cotton crop.

Delay in arrival of crop from lower Sindh – where early sowing took place – has totally upset the market mechanism. New crop normally arrives from these areas in late May or early June every year.

The small quantity of cotton that has made it to the market so far is of poor quality and has yellow spots.

Sindh annually produces around four million bales, however this season around 0.5m less bales would be produced. Sowing in lower Sindh suffered badly owing to acute shortage of water and excessive heat wave which deprived the crop from necessary moisture, thereby affecting growth and cotton quality, experts said.

Though cotton and phutti prices for new crop are steady, the market is devoid of activity in the absence of sustained supply of phutti and cotton, brokers said.

Rising tensions on the global front over tariffs also slowed down trading activity in cotton markets.

Cotton prices remained steady at around Rs8,050 to 8,100 per maund whereas phutti (seed cotton) was being quoted in the range of Rs3,800 to Rs4,150 per 40 kg. The prices are fairly higher than previous season’s rates quoted during the corresponding period.

Meanwhile, ginners are holding round 50 to 60 thousands cotton bales from last season and demanding Rs5,500 to Rs7,600 per muand.

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

Published in Dawn, June 24th, 2018