Cotton decline

Karachi

After moving in a narrow range during the week, cotton prices declined marginally as the demand from millers and exporters eased.

The spot rates at the Karachi Cotton Exchange eased by Rs25 to Rs5,975/maund, while 17,600 bales were traded in Sindh and Punjab regions.  The estimates of cotton production have officially been revised downwards, projecting total production of 11.039 million bales against earlier prediction of 11.272 million bales.

The decline of 230,000 bales is largely being seen in the Punjab province where production of 7.3 million bales is expected against the earlier estimates of 7.5 million bales.  Sindh is likely to produce 3.7 million bales, which is almost at par with the earlier projected figures.  Pakistan’s cotton crop target has repeatedly been condensed due to abnormal weather conditions, low yield, low demand and pest attacks, which discourage farmers to cultivate cotton and substitute to cash crops such as rice, wheat and sugarcane.