KARACHI, July 19: Trading in the new crop lint from the Sindh is progressively picking up as more ginneries have resumed operations followed by steady arrivals of phutti.

Although ginners are offering to sell modest lots but a good beginning has been made as the spinners have another option to meet their demand along with sales by the TCP.

Market sources said extremely hot weather had accelerated the pace of picking operations of phutti in the lower Sindh and central Punjab cotton belt ensuring more supplies to the ginners.

The current fall in new crop price to around Rs2,425 per maund reflects that ginners have a fair profit margins after having purchased phutti from the growers around Rs1,000 and Rs1,050 per 40-kg well above the official support prices, they said.

Floor brokers said spinners and mills appeared to be more interested in new crop for nearby deliveries and were neglecting some sale offers by the ginners who still hold unsold stock of the previous crop.

“The current price flare-up in the New York cotton futures followed by reports of China’s re-entry in the world market as a big buyer is expected to have sympathetic impact on the local prices in the coming weeks,” they said, adding “some of the leading ginners are, therefore, reluctant sellers at the prevailing prices”.

New York cotton futures rose to 52.40 and 54.17 cents per lb, up by 1.45 and 1.41 cents for both the ruling October and the forward December settlements respectively.

There was no change in the official spot rates and were held at Rs2,525 per maund, although new crop is being traded below this rates owing to forward deliveries.

The following are some of the deals in new crop reported by some leading brokers: 200 bales, Mirpurkhas at Rs2,400 (for July 22 delivery), 200 bales, Sultanabad at Rs2,400 (delivery on Aug 20) and 200 bales, at Rs2,425 (delivery on Aug 25).