Prices of Phutti came down modestly on the cotton market on Thursday as the Pakistan Cotton Ginners Association (PCGA) showed an increase in number of arrivals, dealers said.
The official spot rate continued to slide for the second day, losing Rs 100 to Rs 7000, they said. Prices of seed cotton in Sindh per 40 kg for low type was down by Rs 200 to Rs 2600 and the fine variety was lower by Rs 50 to Rs 3050, while in Punjab prices also followed the same pattern, as inferior type dropped by Rs 100 to Rs 2900 and the best type fell by Rs 150 to Rs 3050, dealers said. In the ready session, over 19,000 bales of cotton changed hands between Rs 7975-7200, they said.
Despite the rise in Phutti arrivals, it looks that prices would resist sharp fall in the near future, cotton analyst Naseem Usman said, adding exporter might enter the market due to lucrative rate. The PCGA fortnightly report shows that nearly 3.68 million bales have reached at the ginneries till October 1, registering a 6.88 percent rise compared with the last year. Seed cotton equivalent to 3,684,289 bales reached ginneries compared to 3,447,163 bales’ arrival recorded during corresponding period last year, says a issued by Pakistan Cotton Ginners Association (PCGA) here on Thursday.
According to the Reuters, the New York cotton futures prices ended slightly higher on Wednesday as a fall in the US dollar and gains in agricultural and industrial commodities rekindled buying interest in the fiber after the previous session’s drop. Market participants continued to monitor a partial US government shutdown, which entered a second day with no end in sight.
The most-active December cotton contract on ICE Futures US settled up 0.27 cent, or 0.3 percent, at 86.87 cents a lb, with volume nearly 35 percent over its 30-day average, preliminary Reuters data showed. The following deals were reported as; 5,000 bales of cotton from Khair Pur sold at Rs 7050-7150, 2,000 bales from Upper Sindh at the same rate, 600 bales form Hasil Pur at Rs 6975-7000, 1,400 bales from Rajan Pur at Rs 7000-7135, 1,000 bales from Vehari at Rs 7050-7100, 400 bales from Pak Pattan at Rs 7050, same figure from Sahiwal at the same rate, same number from Lodhran at the same figure, 2,400 bales from Bahawal Pur at same number, same number from Kamalia at Rs 7050, 400 bales from Bakhar at the same figure, 400 bales from Multan at the same rate, same number from Jhang at the Rs 7100, 200 bales from Haroonabad at Rs 7100-7150, 400 bales from Mian Chano at Rs 7150 and same figure from Khanewal at Rs 7200, they added.