KARACHI: There seems to be no end to the rising trend in cotton prices which increased for the fourth straight session on Thursday.

While phutti (seed cotton) arrival continues to be slow, the demand for cotton from spinners keeps intensifying with each passing day.

As a result, cotton price soared to a new record high of Rs9,500 per maund amid reports that some late evening deals were quoted at Rs9,600 per maund.

Phutti prices also moved higher with Sindh variety quoted at Rs4,000 to Rs4,500 and Punjab quality at Rs3,800 to Rs4,600 per maund.

“It is a crisis like situation and all stakeholders in cotton trade are currently faced with disputes among themselves,” observed a leading broker. The oversold position of ginners and slow arrival of phutti has disturbed the usual trading cycle and market norms, he added.

According to market reports, the flow of phutti could improve in August and there is a greater possibility that prices would come down once availability of cotton is streamlined.

The world leading cotton markets gave mixed trend with New York cotton coming under profit selling and Chinese market closing steady.

The Karachi Cotton Association (KCA) spot rates were further raised by Rs200 to Rs9,100 per maund.

Trading on ready counter was fairly active where following deals were reported to have changed hands: 1,000 bales, Tando Adam, at Rs9,350 to Rs9,400; 200 bales, Sanghar, at Rs9,350; 200 bales, Khipro, at Rs9,350; 200 bales, Vehari, at Rs9,300; 200 bales, Nauabad, at Rs9,500; and 800 bales, Sanghar, at Rs9,500.

Published in Dawn, July 20th, 2018