KARACHI: Amid slow phutti arrival, cotton prices moved higher for the second consecutive session on Tuesday. However, some spinners managed to get hold of small lot deals to meet their immediate needs.
The water crisis is worsening with each passing day. Water in Mangla Dam touched an all time low level. However the spell of rains in central Punjab and some parts of Sindh somewhat eased the situation.
Growers in some parts of Sanghar and Mirpurkhas district have started to cotton sowing again which could help recover the expected short fall of around 400,000 to 500,000 bales.
However, this crop would not mature before September or October and could create shortage of cotton.
According to reports, crop in Punjab is quite encouraging and if no pest attack occurs the expected shortfall in Sindh could be covered up.
However, field experts stressed that the agriculture departments need to monitor the cotton crop closely to ensure higher production.
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The government’s decision to increase import duty on 13 items mainly of raw material category mostly used by value-added textile sector is expected to increase the cost of end products.
Meanwhile, India is currently holding 2.2 million bales due to higher exports and increased local consumption as against 4.4 million bales.
On the global front, New York cotton closed easy by US1.25 cents due to stronger dollar and China was steady but Indian cotton came under profit selling and closed lower between Rs200 to Rs300 per candy (356 kg).
KCA spot rates for second consecutive session raised by Rs100 to Rs7,800 per maund.
The following new crop deals were finalised on ready counter: 400 bales, station Tando Adam, at Rs8,150 to Rs8,175; 400 bales, Shahdadpur, at Rs8,100 to Rs8,150; 200 bales, Sanghar, at Rs8,100; 200 bales, Burewala, at Rs8,200; and 200 bales, Vehari, at Rs8,200.