By admin       2018-07-14

KARACHI: Cotton trading maintained bullish trend on Friday as strong demand from spinners pushed prices to new seasonal high of Rs8,800 per maund amid thin phutti arrivals into ginneries.Market pundits believe lint prices may cross Rs9,000 per maund in next couple of days as supplies from lower Sindh have failed to improve.Similarly, phutti prices also increased to Rs4,000 to Rs4,150 for Sindh variety and Rs3,900 to Rs4,300 per 40 kg for Punjab quality.Most of the cotton demand in early season is met from lower Sindh crop where sowing begins much earlier. However, the crop in lower Sindh this season suffered badly due to water shortage and harsh weather.Meanwhile, reports suggest that ginners are currently in a difficult situation as most of them entered into contracts but after sudden rise in phutti prices they are facing delivery issues.The reports further suggest that many ginners in Sindh entered into contracts at a rate of Rs8,700 per maund for new crop cotton, but now prices have gone up due to rising demand from the industry.On the global front the situation is also becoming highly fluid because the USDA report has suggested that the US cotton crop would be short by up to 5.13 per cent.As a result of this the New York cotton prices rose by four cents per lb. Indian cotton also jumped Rs600 per candy while Chinese market closed higher. However, the Karachi Cotton Association (KCA) kept its spot rates firm at Rs8,400 per maund.Following deals were reported to have changed hands on the ready counter: 1,200 bales, Shahdadpur, at Rs8,650 to Rs8,700; 1,600 bales, Tando Adam, at Rs8,675 to Rs8,700; 800 bales, Sanghar, at Rs8,700; 400 bales, Hyderabad, at Rs8,675 to Rs8,700; 400 bales, Kotri, at Rs8,700; and 200 bales, Chichawatni, at Rs8,600.

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