KARACHI, Sept 19: Cotton prices fell on Wednesday as millers hesitated buying on concerns about the quality of the crop following the rains and brokers said it would take perhaps another week for active buying to restart.

According to initial estimates released last week, floods swept across 300,000 acres in DG Khan, Rajanpur and Rojhan areas, which could bring Punjab’s production down by 450,000 bales. Whereas this week, Sindh Abadgar Board said that rain had caused losses of Rs12-15 billion to cotton growers as the inclement weather delayed phutti picking.

The Karachi Cotton Association revised down its spot rate by Rs50 to Rs5,550 per maund and 4,200 bales of cotton changed hands in Sindh at Rs5,450 to Rs5,550 and 3,800 bales in Punjab at Rs5,550 to Rs5,650.

However, New York cotton futures closed up bucking the broad downward trend in commodities, as speculators bought the fibre which had not rallied as much as other raw materials in recent months ahead of US economic stimulus measures from the Federal Reserve.

The following transactions were reported on the ready counter:

SINDH TYPE: 800 bales, Shahdadpur at Rs5,500 to Rs5,600, 1,000 bales, Tandoadam at Rs5,500 to Rs5,600, 1,000 bales, Mirpurkhas at Rs5,400 to Rs5,500 and 1,400 bales, Sanghar at Rs5,500 to Rs5,550.

PUNJAB VARIETY: 1,000 bales, Haroonabad at Rs5,550, 400 bales, Hasilpur at Rs5,550, 400 bales, Bahawalnagar at Rs5,550 to Rs5,600, 200 bales, Vehari at Rs5,600, 200 bales, Duniapur at Rs5,600, 400 bales, Burewala at Rs5,625 to Rs5,700, 200 bales, Khanewal at Rs5,650, 200 bales Rahimyarkhan at Rs5,650, 400 bales, Bahawalpur at Rs5,650 to Rs5,700 and 400 bales, Kabirwala at Rs5,650.