KARACHI: Strong demand for Punjab variety amid improved flow of phutti (seed cotton) from the province helped cotton price touch a seasonal high of Rs6,600 per maund on Wednesday.

However, spinners were cautious about quality and avoided entering into deals where the lint had high moisture content.

According to market reports, Sindh cotton is still facing the issue of moisture where picking has also slowed down due to intermittent rains.

Punjab phutti variety was being quoted at Rs2,900 to Rs3,350 per 40kg and Sindh quality at Rs2,400 to Rs3,000. However, overall crop situation is encouraging because no damage was caused by the recent spell of rains.

Meanwhile, the Punjab government has asked the federal government to place a ban on yarn imports so that the spinning industry start buying from the local market which would benefit the growers.

Though most of the international leading markets turned easier. The Indian cotton prices came under pressure on reports that heavy rains in Gujrat has extensively damaged the standing cotton crop. It is estimated that growers will have to sow up to 50 to 60 per cent of the crop again.

The Karachi Cotton Association (KCA) left its spot rates unchanged at overnight level.

The following deals were reported on Wednesday: 400 bales, Kotri, at Rs6,300; 1,000 bales, Shahdadpur, at Rs6,300 to Rs6,350; 200 bales, Sinjoro, at Rs6,325; 600 bales, Tando Adam, at Rs6,325 to Rs6,350; 400 bales, Sanghar, at Rs6,350; 200 bales, Pak Pattan, at Rs6,500; 200 bales, Chichawatni, at Rs6,600; and 100 bales, Burewala, at Rs6,600.

Published in Dawn, July 27th, 2017