KARACHI: Cotton prices continued to fall on Saturday in line with global trend where most of the leading markets closed with fresh losses amid conflicting reports about the production and consumption of cotton this season.
Floor brokers said that the last two days of easy conditions extended under the pressure of global trend in cotton prices and uncertain outlook for the crop across the world. Though there are no negative reports about the condition of cotton crop so far, global trends are heavily weighing against the domestic factors.
However, due to late sowing in Punjab this season, the crop size would be smaller than the previous season’s, brokers said. Brokers believe the prices in domestic market should have been higher due to expected wide gap between demand and supply.
But the global trend of falling cotton prices continued to overshadow the market sentiment with lint prices recording fresh fall. As a result, cotton prices recorded a fall of Rs300 to Rs350 per maund (around 37 kilograms) during the week. Similarly, phutti (seed cotton) prices also came down by Rs200 to Rs250 per 40kg.
The cotton prices were hovering around Rs7,000 to Rs7,100 per maund early in the week came down in the range of Rs6,350 to Rs6,500 for Sindh quality by the close of the week. The Punjab variety cotton also declined by Rs6,550 to Rs6,600 per maund while official spot rates were reduced by Rs250 to Rs6,350.
The Karachi Cotton Association cut its spot rate further by Rs50, to Rs6,350 per maund.
Major deals on the ready counter were: 800 bales from Mirpurkhas (Rs6,350 to Rs6,525), 1,000 bales Tando Adam (Rs6,350 to Rs6,550), 800 bales Shahdadpur (Rs6,450 to Rs6,550), 600 bales Hyderabad (Rs6,450), 200 bales Shahpur Chakar (Rs6,500), 200 bales Nawabshah (Rs6,500), 200 bales Moro (Rs6,525), 200 bales Saheh Pat (Rs6,550) and 200 bales Vehari (Rs6,650).