KARACHI: Short supply of phutti (seed cotton) pushed cotton prices higher for the second consecutive session on Wednesday. The current spell of downpour in Punjab has resulted in short supply of cotton in front of rising demand.
As a result, cotton prices moved higher on strong demand from spinners who are largely dependent on Sindh cotton.
The flow of phutti in Sindh was normal whereas rains in many cotton-growing areas in Punjab are hindering phutti supply, brokers said.
Due to surge in cotton demand phutti prices also moved higher and were being quoted in the range of Rs3,200 to Rs3,350 per 40 kilograms.
Market reports suggested that phutti arrivals in Punjab are late because of late sowing of cotton crop this season. The short supply pushed cotton prices to Rs6,700 per maund (around 38kg) for Sindh variety and Rs6,900 for Punjab quality.
The Karachi Cotton Association raised its spot rate by Rs100, to Rs6,350 per maund.
The following deals were reported on the ready counter: 1,400 bales from Tando Adam (Rs6,475 to Rs6,550 per maund), 2,000 bales Sanghar (Rs6,475 to Rs6,600), 800 bales Kotri (Rs5,600 to Rs6,550), 1,000 bales Hyderabad (Rs5,600 to Rs6,550), 2,000 bales Shahdadpur (Rs6,500 to Rs6,550), 1,200 bales Mirpur Khas (Rs6,500 to Rs6,550), 400 bales Kunri (Rs6,500), 400 bales Hala (Rs6,500), 200 bales Gloarchi (Rs6,500) and 600 bales various stations (Rs6,775).
Meanwhile, the Indian government has decided to pay cash to cotton growers as compensation against short crop. The world cotton market generally remained steady.
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