KARACHI: Cotton buyers generally avoided entering into big deals owing to high prices against prevailing world rates of the commodity.

According to reports, cotton production has further declined and so far the crop is short by up to 1.1 million bales over corresponding period last year.

Cotton analyst Naseem Usman called this an alarming situation. “Currently there are rains in some cotton growing areas of Sindh and Punjab which would further damage standing crop in both provinces,” he added.

Earlier on, the crop was badly damaged by heavy rains and gusty winds in lower Sindh and by high temperatures in Punjab but now cotton is facing the onslaught of heavy rains.

Pakistan turned out to be biggest cotton buyer from United States by importing 62,900 bales according to US Department for Agriculture latest export figures which recorded 15 per cent growth during the week.

The world leading cotton markets were steady with New York cotton closing higher and Indian cotton firm. Chinese cotton market remained closed.

The Karachi Cotton Association (KCA) spot rates were firm at overnight level at Rs8,700 per maund.

The following deals were reported to have changed hands on ready counter: 800 bales, station Tando Adam, at Rs7,850-7,900; 1,000 bales, Khairpur, at Rs8,750; 800 bales, Saleh Pat, at Rs8,750-8,800; 2,000 bales, Rajanpur, at Rs8,775-8,800; 1,200 bales, Haroonabad, at Rs8,750-8,850; and 1,200 bales, Mianwali, at Rs8,850.

Published in Dawn, October 4th, 2019