KARACHI: Strong demand for new crop elevated cotton prices on Monday. However, sluggish arrival of phutti (seed cotton) kept the proceedings devoid of activity and only modest trading was reported.
All deals that transpired were of Sindh quality cotton. Phutti arrival from Punjab has also begun, though it is on the slower side.
Sluggish phutti arrival has encouraged higher prices which were being quoted in the range of Rs3,900 to Rs4,200 per 40kg for Sindh quality and Rs3,700 to Rs3,900 per 40 kg for Punjab variety.
The water crisis hovers badly over the cotton crop yield and its quality, a broker said. There are complaints about phutti quality coming from lower Sindh which has short staple and yellow spots.
Meanwhile, the cotton yarn market is also reported to be firm in front of strong demand.
The world leading cotton markets, including New York and China, were reported to be firm. However, Indian cotton surged by Rs1,200 to Rs44,200 per candy (356 kg).
The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs7,500 per maund.
Trading on ready counter remained modest with around 1,000 bales coming from Mirpur (Sindh), Tando Adam, Shahdadpur, Matiari and Hyderabad in the price range of Rs8,100 to Rs8,225 per maund.