STAFF REPORT IBD: Late arrival phutti in the market has pushed the prices higher on the cotton market, however, official spot rate remained unchanged at Rs 5800, phutti dealers said adding in the ready business, over 9,000 bales of cotton changed hands between Rs 5800-Rs6100.
Sindh witnessed seed cotton at Rs 2600-2650 while in Punjab the phutti rates were unchanged at Rs 2600-2700, they said. In fact, the mills are busy in cautious buying in anticipation of rise in prices after Eid holidays, dealers said.
“Prices likely to move in tight range due to low arrivals of phutti and trading activity may slow down in the near future,” said Naseem Usman, a phutti dealer.
Market participants said that cotton imports in China, the worlds largest consumer, surged more than 150 per cent year on year in July as Beijings stockpiling programme raised local prices and made imports more attractive.
On the issue of future price trend in the market, some analysts are of the view that the cotton Leave Curl Virus (CLCV), which attacked the crop during the last three weeks, is spreading throughout Punjab.
The delayed monsoon, un-affordable fertilizer, even costlier diesel, non-existent existent electricity and depressed prices, all have affected adversely the crop.