Advance cotton deals hit Rs10,000 per 40kg ahead of new crop arrival

Advance trading of Pakistan’s new cottonseed (phutti) crop has begun at record levels, with initial deals touching Rs10,000 per 40kg for mid-May delivery, indicating strong price expectations before the crop enters the market, Dawn reported. 

Market sources said the first deal involved four truckloads of phutti between a trader in Tando Bago and a ginning factory in Khanewal at Rs10,000 per 40kg for delivery between May 15 and 25.

In a separate transaction, a Sanghar-based ginning factory sold 200 bales of new crop lint at Rs21,700 per maund for delivery on May 20.

Traders said further momentum was driven by large purchase offers in the market, including open buying at Rs9,200 per 40kg in Sanghar and Rs10,000 per 40kg in Khanewal for the same delivery period.

Industry representatives said the early activity follows a sharp increase in lint prices, which have risen by around Rs3,500 per maund over the past one to one-and-a-half months to reach about Rs20,000 per maund, a two-year high.

Market participants expect additional deals in the coming days, with prices likely to remain firm due to supply concerns. Rainfall in cotton-growing areas is expected to delay crop arrival, while cotton imports have remained largely suspended for nearly two months amid the Gulf conflict.

However, traders said prices could ease if ongoing Pakistan-Afghanistan discussions in China lead to the resumption of cotton imports. Afghanistan is estimated to have 250,000 to 300,000 bales in stock, which could enter the Pakistani market if trade flows normalise.

For now, forward trading activity reflects expectations of further increases in both phutti and lint prices as the new crop season approaches.