KARACHI, Nov 5: Trading on the cotton market on Monday resumed on a bullish note as spinners were not inclined to take even a technical breather followed by reports of about 16 per cent decline in arrivals of phutti into the ginneries.

While the official spot rates were quoted higher by Rs50 per maund, in physical trading some quality lots were traded as higher as Rs1,900 per maund.

“There is a loud whispering in the cotton trade that the crop may be below the official target because of late pest attack in some of the southern Punjab growing areas”, says a leading cotton broker.

But others claim the crop is in line with official projection in major growing areas and production losses may be covered if there is a damage in some other areas.

The market sources, however, attribute the current price flare-up to a considerable fall in arrivals of phutti into the ginneries for the fortnight ended Oct 31.

“A 16 per cent loss in arrivals at this peak picking time could work against both side of the production estimates”, they say adding “rise in lint and phutti prices may not be due to strong buying by the mills and the TCP, it may relevance to growers production perceptions”.

According to official arrival figures released by the Pakistan Cotton Ginners Association (PCGA), phutti arrivals into the ginneries fell to 3.276 million bales equivalent as compared to 3.882 million bales during the same period last year, showing a decline of 15.63 per cent.

Mill buying at 2.028 million bales was also down as against the last year figure of 2.429 million bales but the TCP tally was larger as compared to previous year.

Dealers said continued fall in arrivals of phutti may not be because of late sowing alone, there could some other relevant factors also, which also include damage to crop.

This perception was also hold good viewed in the backdrop of sharp increase in phutti prices, which has risen to Rs850 per 40 kg after having fallen at one stage to Rs650, they added.

Ready offtake was active totalling about 8,000 bales, the following being some of the notable deals:

SINDH TYPE: 200 bales, Kandiaro at Rs1,850, 200 bales, Tharosha at Rs1,850, 200 bales, Rasoolabad at Rs1,850, 200 bales, Hingorja at Rs1,850, and 200 bales, Sakrand at Rs1,775.

PUNJAB VARIETY: 800 bales, Sahiwal at Rs1,700 to 1,750, 200 bales, Depalpur at Rs1,750, 200 bales, Chishtian at Rs1,750, 200 bales, Burewala at Rs1,760, 200 bales, Kabirwala at Rs1,790, 200 bales, Haroonabad at Rs1,800, 200 bales, Alipur at Rs1,800, 200 bales, Kehror Pacca at Rs1,850, 400 bales, Rajanpur at Rs1,850, 1,000 bales, Ahmedpur East at Rs1,875 and 600 bales, Sadiqabad at Rs1,900.