KARACHI, July 5: The new-crop prices on the cotton market on Saturday remained stable despite steady arrivals of phutti into the ginneries as ginners kept judicious balance between supply and demand.

Market sources said private sector exporters were active buyers at the current rates as compared to spinners and mills as the weakness of the rupee has made exports more attractive.

“Above normal daily phutti arrivals in the central Punjab cotton belt where over two dozen factories have resumed operations indicate that the crop is expected to be above the official target,” said Naseem Usman, leading cotton analyst and chairman of brokers’ forum.

Phutti rates were being quoted around Rs1,600 to Rs1,650 per 40 kg in Punjab and around Rs1,700 in Sindh cotton belt.

The ginning operations in Sindh were delayed owing to shortage of canal water and the sowing was done about six weeks behind the official scheduled time based on climatic conditions, he added.

Market sources said larger arrivals in early crop were always considered a prelude of a good crop and this perception has further intensified on reports of pest-free crop so far in the major areas.

They said ginners held a stock of 12,000 bales of the new crop in their godowns awaiting pick up in mills’ demand after the market conditions showed an improvement on the world front.

Official spot rates were, however, again firmly held at the last close of Rs3,650 per maund for an average quality of lint, but in physical trading most of the deals were done well above them.

Mill intake was on the higher side as till late in the evening about 6,000 bales of new crop changed hands as under: 1,200 bales, Sahiwal at Rs3,700, 200 bales, each Chichawatni, Burewala, Depalpur also at Rs3,700 and 400 bales, Arifwala at Rs3,690 to Rs3,700.

But 200 bales, from Sanghar ginnery were sold at a premium of Rs50 per maund at Rs3,750.