KARACHI: Trading was slow on Saturday as price rose due to slower arrivals of phutti (seed cotton).

Floor brokers said new spell of rains in Punjab and Sindh has once again affected phutti arrivals from cotton fields into ginneries. Slow arrivals of phutti with high demand for cotton have already pushed prices higher than the world cotton markets.

Consequently, some big spinning groups have already started to arrange cotton through imports to meet their long-term demand for cotton. There are talks in the market that spinners are apprehending that prices would go higher due to short crop.

The most disturbing factor for the spinning industry was the long closure of markets owing to Eidul Azha holidays.

The phutti and cotton haulage from fields into ginning units and from there to spinners were already being affected amid shortage of transport.

Cotton analyst Naseem Usman said arrivals of phutti were expected to improve after Eid because currently second spell of monsoon rains coupled by shortage of transport was badly affecting cotton trade.

The Karachi Cotton Association left its spot rate unchanged for third consecutive session.

Major deals on the ready counter were: 400 bales from Hyderabad (Rs6,750 to Rs6,800), 600 bales Sanghar (Rs6,750 to Rs6,800), 200 bales Kotri (Rs6,775), 400 bales Shahdadpur (Rs6,800), 200 bales Moro (Rs6,800), 400 bales Mirpurkhas (Rs6,800), 200 bales Chowdgi (Rs6,825), 400 bales Tando Adam (Rs6,825), 100 bales Pakpattan (Rs6,950), 200 bales Mian Channu (Rs6,950), 200 bales Vehardi (Rs6,950), 100 bales Haroonabad (Rs7,000) and 100 bales Chichawatni (Rs7,000).

Published in Dawn, August 28th, 2016