The constant demand from leading spinners for quality cotton has maintained rising trend in lint prices. However, on the other hand slow arrivals of phutti (seed cotton) have kept trade volume from gaining momentum.
Consequently, there is constant rise in phutti prices which resulted in higher lint prices. The Punjab variety cotton is mostly being quoted between Rs6,800 to Rs7,300 per maund and phutti prices in the range of Rs3,000 to Rs4,000 per 40 kg.
Similarly, Sindh quality cotton is being quoted between Rs5,800 and Rs7,200 with phutti price ranging between Rs3,000 and Rs3,500 per 40kg. However, lower phutti arrivals are pushing cotton prices higher in front of strong demand.
Though crop size would be little over 13 million bales, expected higher demand for cotton and cotton yarn due to duty-free access to European Union markets and large orders booked by Pakistani exhibitors at Heimtextil fair in Germany are major driving forces for higher cotton demand.
Cotton analyst Naseem Usman said that many spinners have already booked large import orders from India due to shortage fears and so far around 800,000 to 900,000 cotton bales have been booked. Furthermore, another 300,000 to 400,000 cotton bales import contracts have been placed by millers with US and Brazilian exporters.
The following major deals were reported to have transpired on ready counter on Saturday: 800 bales from station Daur at Rs6,800, 800 bales from Garmaharaja at Rs6,700 to Rs7,100, 1,000 bales from Khanewal at Rs7,000 to Rs7,100, 200 bales from Karror Pakka at Rs7,050, 600 bales from Shadan Lund at Rs7,050, 1,000 bales from Haroonabad at Rs7,050 to Rs7,200, 200 bales from Yazman Mandi at Rs7,100, 258 bales from Vehari at Rs7,100, 1,000 bales from Rajanpur at Rs7,100, 200 bales from Muhammad Pur Dewan at Rs7,200, 400 bales from Rahimyar Khan at Rs7,225 and 200 bales from Hasilpur (conditional) at Rs7,300.
At the Karachi Cotton Association (KCA) spot rates remained unchanged at previous level and trading on ready counter was fairly moderate.
While, in India, rising trend in cotton prices is a cause of concern for spinners who were looking forward to meet their shortfall from across the border. Strong demand from local mills and higher import orders from China is pushing Indian cotton prices higher.
In New York market continued to be under pressure where all future contracts ended with fresh falls.
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