KARACHI, July 24: Firm conditions were again witnessed on the cotton market on Tuesday where new crop prices were quoted further higher by Rs25 to Rs40 per maund. Unlike the previous sessions some of the lots from the lower Sindh cotton belt were traded as higher as Rs3,090 per maund, which is said to be the season’s highest rate for this type of lint, dealers said.

The fresh increase in prices was attributed to reports of damage to standing crop in the lower Sindh cotton belt. Although official figures about the extent of the damage are not officially available, dealers said.

However, ginners said pests did attack in some of the areas in Mirpukhas but the damage may not be above the injury level. But flash floods did damage crop in some other areas of Sindh. “The condition of crop in the Punjab cotton belt is satisfactory,” they added.

Most of the deals were confined to the lower Sindh type, while spinners did not make fresh offers for the central Punjab lint as ginners raised their asking price above Rs3,100 per maund.

Floor brokers said the New York cotton futures had declined by five cents per lb from their seasonal high levels on selling but they did not influence prices elsewhere on the world markets.

The spinners’ threat to shut down their business if the banks did not renew their overdraft limit and extend soft loans did not affect the local prices as ginners continued to cash in on the pressure on ready supplies, they added.

The New York cotton futures on Tuesday were quoted lower by 0.10 cents per lb for the ruling October settlement, but forward December delivery was marked up by 0.08 cents at 62.80 cents per lb.

The official spot rates on the other hand were firmly held at the last level, although in the ready section most of the deals were done well above them.

Mill ready off-take was light owing to higher asking prices. About 1,500 bales of new crop from Sindh changed hands as under: 200 bales, each Sanghar and Mirpurkhas at Rs3,050, 800 bales, Tando Adam at Rs3,050 to Rs3,075, 200 bales at Rs3,090.

The following are Tuesday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32” micronair value between 3.8 to 4.9 NCL.

Rate for Ex-Gin Price Up-country Spot rate

Expenses Ex-Karachi

37.324 kgs 2,900 50 2,950.00

Equivalent

40 kgs 3,108 50 3,158.00