KARACHI: Buying rush pushed cotton prices higher for the second consecutive session on Tuesday as leading spinners and exporters sought to cover their positions.

According to brokers there is a demand and supply issue which was pushing cotton prices higher. Once phutti (seed cotton) supply from Punjab resumes fully cotton prices are likely to come down, a broker explained.

The government estimates cotton crop size at around 14.2 million bales while private estimates suggest production figures at around 11m bales.

The US Department of Agriculture (USDA) has put Pakistan’s cotton crop size at 8.6m bales (480kg) which comes to around 11m bales having a weight of 170kg.

Meanwhile, polyester prices also moved higher by Rs3 per kg to Rs198.

According to reports, polyester yarn prices in China have gone up – a strong indicator that imports from the neighbouring country will be costlier.

Phutti prices moved higher in line with cotton. Sindh variety phutti was quoted between Rs3,800 to Rs4,000 per 40 kg while Punjab variety was in the range of Rs3,700 to Rs3,900. Good quality phutti from Balochistan fetched Rs3,800 to Rs4,000 per 40 kg.

Rising cotton prices on ready counter forced the Karachi Cotton Association (KCA) to revise spot rates upwards by Rs50 to Rs8,300 per maund.

The following deals were reported to have transpired: 1,000 bales, Shahdadpur, at Rs8,350; 2,000 bales, Tando Adam, at Rs8,350-8,400; 1,600 bales, Sanghar, at Rs8,300-8,350; 1,000 bales, Nawabshah, at Rs8,300-8,350; 1,000 bales, Saleh Pat, at Rs8,350-8,450; 2,000 bales, Khairpur, at Rs8,350-8,400; 600 bales, Khanewal, at Rs8,400-8,500; 400 bales, Bahawalnagar, at Rs8,350-8,450; 200 bales, Layyah, at Rs8,450; 200 bales, Arif­wala, at Rs8,450; 400 bales, Chichawatni, at Rs8,400-8,450; 600 bales, Haroona­bad, at Rs8,450-8,450; and 400 bales, Mian Channu, at Rs8,425-8,450.

Published in Dawn, September 12th, 2018