The picking of seed-cotton (phutti) in southern Punjab, which produces 80 percent of total cotton production, is gathering pace as the price of seed-cotton has jumped to Rs 1180 per 40 kg and market players are expecting further enhancement in the rate to Rs 1300 per kg.
The cotton market has started picking up pace on quick buying, pushing the prices to above Rs 2,450 per maund (37.324 kg), an increase of Rs 50 to Rs 90.
A broker Mudabbir Ali Shah said that market conditions were suitable for the sellers on Saturday as thirsty buyers had started hectic buying despite a slightly negative trend in New York cotton futures, and they had purchased 1,20,000 bales worth Rs 1,323 million during the last two days. One analyst, Abdul Wahid, said that this season was not going to prove much beneficial for the buyers who had remained in a strong position throughout last year.
"Now, the crop is well below the estimates and sellers have become aware of the actual crop size. So, they are not coming under any pressure of the buyers," he said.
He said he expected further increase in the prices of cotton to Rs 2600 or 2700 per maund during the coming days. However, he added that he was hopeful that TCP would allow the local mills to participate in its tenders for cotton, as assured by Commerce Minister Humayun Akhtar in a meeting with All Pakistan Textile Mills Association (Aptma) the other day.
Meanwhile, the Trading Corporation of Pakistan sold 9,500 bales of Grade-III St 1-1/32" at its counter offer of 45.50 cents/lb to four parties, and 8,000 bales of Grade-III St 1-1/16" to three parties at the counter offer of 42.25 cents per lb.
The New York cotton futures market was slightly down on Friday. December declined by 0.21 cent to 50.20 cents per lb, and March decreased by 0.05 cent to 53.55 cents per lb.
Cotton spot rate increased by Rs 85 to Rs 2,450 per maund. After including Rs 50 as upcountry charges, ex-Karachi spot rate came to Rs 2,500 per maund.