KARACHI: Highly volatile conditions witnessed in cotton trade throughout the week slightly settled down on Saturday as growers and ginners stopped asking for higher prices after realising that the rates have hit the roof.

Compared to normal trading pattern being witnessed in the world markets, domestic cotton market remained highly volatile owing to short crop caused by shortage of irrigation water at the time of sowing and delay in phutti (seed cotton) arrival.

Cotton prices have already touched the second highest level in the history of the country at Rs9,600 per maund as against Rs14,000 per maund recorded in year 2010-11, brokers said.

Phutti prices have also slightly come under correction and did not move higher.

It seems that in coming weeks the market would start settling down and the flow of phutti is also ex­­pected to improve by next month.

Presently, phutti flow from Punjab has stopped owing to renewed spell of rains. Once the situation normalises, phutti arrival would increase and help cotton prices stabilise. Cotton crop in Punjab is doing well so far. If there is no pest attack and government continues monitoring the crop closely, production would be higher over last season.

It is expected that cotton growers in lower Sindh may go for a second attempt of sowing as availability of irrigation water is reported to have improved.

The world leading cotton markets gave mixed trend with New York cotton closing further lower but Indian and Chinese markets closed steady.

The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs9,400 per maund.

The following deals were reported to have changed hands on ready counter: 1,400 bales, Tando Adam, at Rs9,450 to Rs9,600; 600 bales, Shahdadpur, at Rs9,500 to Rs9,600; 400 bales, Burewala, at Rs9,550 to Rs9,600; 400 bales, Vehari, at Rs9,550 to Rs9,600; and 100 bales, Chichawatni, at Rs9,600.

Published in Dawn, July 22nd, 2018