KARACHI: The Karachi Cotton Exchange (KCE) sport rate fell Rs200 to Rs6,300 per 37.324kgs on Monday as concerns over rains damaging any substantial part of cotton crop subsided, traders said.
The threat of floods damaging farmland had made traders nervous, but with August coming to an end the market expects that supplies will continue uninterrupted, they said.
“We are through the dangerous part of the month. There still will be sporadic rains, but nothing to worry about,” said Shakeel Ahmed Khilji, a cotton broker.
Thatta and Badin were the worst affected by the recent rains. “We don’t know the exact situation there, but the region produces just 400,000 bales.”
Pakistan is set to harvest a bumper crop of 15.2 million bales, sufficient to meet this year’s demand. Each bale has 170kgs.
Almost 33 percent of this comes from Sindh, which received widespread rains and flood in the past few days. Sanghar, the largest cotton producing region, has not been affected, however, traders said.
Cotton prices eased despite a strike call given by Pakistan Cotton Ginners Association (PCGA). Traders say that many ginning companies are still operating and there is no shortage of cotton bales.
Khilji said that exporters have become active in the market. “So far 222,000 bales have been exported out of 0.5 million bales sold as part of future contracts.”