The Karachi Cotton Association’s (KCA) official spot rate for cotton declined to three-year low at Rs4,850 per maund (37.324 kilograms) after ginners reported significant increase in supply of the commodity to the markets, a dealer said on Wednesday.
“The Pakistan Cotton Ginners’ Association (PCGA) has reported an increase of around 10 percent in the commodity production to 10.43 million bales (155 kilograms) during July 1 to November 15 against 9.51 million bales in the same period last year,” said a broker at the Karachi Cotton Exchange.
The higher production convinced the KCA to revise down its rate by Rs50 per maund (37.324 kilograms) on Wednesday. The association has decreased the official rate by a total of Rs150 per maund in the last three consecutive days, he said.
Traders bought a total of 18,400 bales at Rs4,600 to Rs5,100 per maund as compared to 27,800 bales bought at Rs4,650 to Rs5,100 per maund a day ago, the KCA reported.