KARACHI, July 2: Trading in new crop on Wednesday showed a modest increase as more ginneries resumed operations in the central Punjab cotton belt.

The phutti arrivals in this cotton belt are picking up each day owing partly to an extremely warm weather as growers are dumping the commodity mostly on cash basis at Rs1,700 to 1,800 per 40 kg depending on the moisture content in it, floor brokers said.

About a 1,000 new crop bales were traded at an average uniform rate of Rs3,700 per maund, which, they said, is in line with the export parity levels of the spinners and mills.

But some leading spinners are still out of the market hoping further fall in the local prices in sympathy with the world prices below the 70-cent per lb level, market sources said.

“The fall of New York cotton futures below 70 cent level for the maturing July contract owing to limit-fall for the second consecutive session on heavy investment and trade selling, spinners hope, may push local prices lower in the coming sessions also,” they said.

The maturing July and the ruling October contracts were quoted lower by 2.62 and 2.27 cents per lb at 68.78 and 73.21 cents per lb a day earlier.

Floor brokers said indications are that the mill demand will rise further owing to the restoration the duty drawback facility during the next couple of weeks and that could push prices further higher.

But ginners said the future price outlook will be guided by pace of arrivals of phutti into the ginneries and a possible size of the crop according to initial unofficial surveys.

The official spot rates for an average lint were firmly held at the last level of Rs3,700 per maund.

The following are some of the deals, which had gone through in the ready section:

Current Crop: 1,872 bales, Khanpur at Rs3,700.

New Crop: 200 bales, Chishtian, 100 bales each Pakpattan and Haroonabad at Rs3,700 and 100 bales, Arifwala at 3,800.