KARACHI: The recent heavy rains have adversely affected phutti (seed cotton) arrival from Punjab cotton fields and restricted trading in new crop on Friday.
There was strong demand for quality cotton from spinners but short supply of quality cotton hindered proceedings. However, it was encouraging to note that cotton and phutti prices were steady for both Sindh and Punjab varieties. The Punjab quality cotton remained pegged at around Rs8,550 and Sindh at Rs8,450 per maund.
According to reports new crop phutti arrival also started in Balochistan and was being quoted in the range of Rs4,000-4,100 per 40 kg.
Cotton analysts were critical about the government’s attitude towards the cash crop. They said that cotton sowing has almost ended in both Sindh and Punjab but the promised indicative price for phutti has not been announced so far. The purposed of indicative price, they said, was to encourage growers to cultivate more cotton than other crops.
Contrary to this India has already increased indicative price for phutti by Rs105 per 100kg where cotton output is feared to be lowest in the last one decade at around 30.12 million bales.
On global front New York cotton remained under pressure following lower export figures. The trade war between US-China — with former biggest cotton exporter in the world and latter biggest consumer — continued to depressed cotton prices.
The Karachi Cotton Association (KCA) spot rates were raised by Rs50 to Rs8,350 per maund.
The following deals were reported to have changed hands on ready counter: 2,000 bales, station Tando Adam, at Rs8,450; 1,000 bales, Sanghar, at Rs8,425-8,460; 800 bales, Shahdadpur, at Rs8,450-8,475; 400 bales, Burewala, at Rs8,550; 200 bales, Chichawatni, at Rs8,550; and 200bales, Taminwali, at Rs8,550.
Published in Dawn, July 20th, 2019