KARACHI: Cotton prices fell Rs1,000-1,200/maund with the arrival of import shipments, while rain-affected commodity also lost demand and was sold at lower rates, traders said.
The prices remained stable in the international market contrary to the local market, where ginners were compelled to sell at lower rates.
Traders said showers affected the quality of the crop besides import shipments, pending for few months, started reaching the country, affecting the demand.
Cotton yarn supply in the local market also decreased that affected export shipments of cotton yarn and textile products.
Cotton prices in Sindh remained at Rs12,000-13,200 per 40 kg with a drop of Rs1,200 per maund, while seed-cotton traded in the province at Rs5,000 to Rs5,600 per 40kg after a drop of up to Rs500 per 40kg, cottonseed in Sindh traded at Rs1,550 to Rs1,650 per maund. In Punjab, lint fetched prices of Rs13,100 to Rs13,300 per maund after a drop of around Rs1,000 per maund, seed-cotton was traded at Rs5,200 to Rs5,700 per 40kg, while cottonseed traded at Rs1,650 to Rs1,750. Cotton rates in Balochistan traded at Rs13,100 to Rs13,200 per maund and seed-cotton at Rs5,900 to Rs6,400 per maund.
Spot rate committee of the Karachi Cotton Association decreased the official spot rate by Rs800 to Rs13,100 per maund.
Chairman Karachi Cotton Brokers Association, Naseem Usman, said the cotton prices remained mixed in the international market. New York Cotton market remained at 92.50-94.70 cents per pound.
According to the weekly USDA report, export of US cotton was higher than market expectations. A total of 453,000 bales were sold during the week, up 330 percent compared with the previous week.
China remained the largest buyer followed by Pakistan. However, shipment services remained slow due to Covid-19 issues and weather conditions.
Cotton prices in Brazil, Central Asian countries, Africa and Indian remained stable during the outgoing week.
According to USDA report, world cotton production increased 750,000 bales to 119.59 million, while world cotton consumption was recorded at 124.14 million bales with an increase of 810,000.
World cotton trade improved after some improvement in the situation after Covid-19 lockdown. The report mentioned an increase in the US, Australia and Argentina.
The US cotton production increased 1.25 million bales to 18.51 million bales despite a decline of 4 percent in the area under cultivation. Traders said such an increase in the US was beyond market expectations.
Market sources said due to an increase in the lint prices in Pakistan, the prices of cotton yarn had also increased, resulting in the closure of a large number of power looms.
