KARACHI: In an otherwise slow trading on the cotton market on Friday, the first advance deal of phutti (seed cotton) from next crop (2015-26) was reported from Sindh. The undertone remained firm but outlook was uncertain.
The last three days’ brisk activity was no more evident as buyers withdrew to the sidelines on higher asking price by ginners. It is a temporary withdrawal from buyers as they do not want prices to move higher, brokers said.
Cotton analyst Naseem Usman said the market should have moved higher on reports that India was also having short crop; but strangely it behaved the other way around.
According to latest phutti arrival figures of up to April 5, 2016, India has produced 30.15 million bales as against 36.65m bales a year earlier. As a result, the New York cotton market also surged where all the future contracts finished with fresh gains.
Details of the advance deal from the next crop indicate that it was transpired at Rs3,200 per maund and a truck load of phutti from lower Sindh has been booked by a ginning unit in Burewala for June, 2016 delivery.
In general, the market remained steady and slow with buyers avoiding panic buying that could spur prices and make cotton even costlier, brokers said. The Karachi Cotton Association (KCA) spot rates remained at overnight level.
Major deals on ready counter were: 400 bales from Mianwali (Rs5,425), 600 bales from Yazman (Rs5,325 to 5,355) and 1,200 bales from Rahimyar Khan (Rs5,500).