KARACHI: The cotton market on Saturday came under ­pressure due to sharp decline in the buying activity.

Brokers attributed the sudden fall in prices and activity to the ongoing political uncertainity in Islamabad.

Contrary to brisk activity and rising trend in cotton prices noted during the week, the market was dull on Saturday.

During the week, cotton prices rose between Rs200-300 per maund. Prices for cotton from Balochistan soared to Rs10,000 per maund — a nine-year record.

Phutti (seed-cotton) prices also touched record high of Rs5,000 per 40 kg.

Cotton prices touched historic high in 2010-11 at Rs14,000 per maund.

The Karachi Cotton Brokers Forum Chairman Naseem Usman said the standing crop is badly damaged due harsh weather conditions and pest attacks.

The situation has further turned ugly as a locust attack in cotton growing areas of Bahawalpur is likely to cause more damage to the crop, Usman added.

The initial cotton production estimate placed by government at 15 million bales has been revised downward by the Cotton Crop Assessment Committee to 10.2m bales.

However, private estimates place actual cotton production at 9m bales only.

On global front, New York cotton market after moving higher on strong demand from China came under profit selling.

The Indian cotton was easy and Chinese markets were firm.

The Karachi Cotton Association (KCA) adjusted its spot rates downward by Rs50 to Rs9,400 per maund.

The following deals were reported to have changed hands on the ready counter: 200 bales, station Nawabshah, at Rs8,150; 1,600 bales, Rohri, at Rs9,000; 1,200 bales, Rahim Yar Khan, at Rs9,650-9,700; 600 bales, Sadiqabad, at Rs9,650; 400 bales, Khanpur, at Rs9,650; 2,000 bales, Fazilpur, at Rs9,500; 400 bales, Yazman, at Rs9,325; and 400 bales, Chishtian, at Rs9,000.

Published in Dawn, November 3rd, 2019