KARACHI: Cotton prices rose further on Saturday in front of rising demand for new crop lint and short supply due to slow down in phutti (seed cotton) arrival.
At the outset, leading textile mills were seen active in the trading ring though short supply restricted trading activity. However, prices moved higher and the Karachi Cotton Association spot rates were revised further by Rs50 to Rs8,400 per maund.
Cotton prices on ready trading moved up with Sindh variety cotton was quoted at around Rs8,500 and Punjab at Rs8,600 per maund. Phutti prices moved up amid short supply.
The recent heavy rains in Punjab have hindered cotton picking and caused short supply of new crop lint. Reports suggested that many ginners are presently holding ‘long position’ due to oversold position.
Private estimates for new crop cotton sale so far have been placed at around 100,000 bales. Once arrival of phutti from Punjab gains momentum trading volume will also expand, sources added.
According reports coming from Sindh and Punjab cotton fields, the crop is satisfactory, though very small incidents of pest attack have been witnessed.
On the global front, the New York cotton after staying under pressure for full week rebounded with all the future contracts closing higher by around one US cent. The Indian and Chinese cotton also remained firm.
The following deals were reported to have changed hands on ready counter: 600 bales, station Shahdadpur, at Rs8,475-8,500; 1,400 bales, Tando Adam, at Rs8,500; 600 bales, Mirpurkhas, at Rs8,500; 1,200 bales, Sanghar, at Rs8,500; 200 bales, Khadro, at Rs8,500; 400 bales, Sinjhoro, at Rs8,500; 400 bales, Chichawatni, at Rs8,600; 600 bales, Mian Channu, at Rs8,600; 200 bales, Sahiwal, at Rs8,600; 200 bales, Samundri, at Rs8,600; and 400 bales, Vehari, at Rs8,550.
Published in Dawn, July 21st, 2019