Cotton price has bounced back to two-week high at Rs5,700/maund (37.324 kilogram) in Pakistan after textile mill-owners made panic buying on reports of short crop amid quality issues this year, said a dealer on Wednesday.
Traders have paid Rs5,700/maund for 1,000 bales at Rahim Yar Khan, reported the Karachi Cotton Association (KCA).
“Recent raining has ruined significant part of the crop, while the quality of remaining crop in the fields is not so good,” said a broker at Karachi Cotton Exchange.
Partly, the massive attack of whitefly on the crop nationwide has not allowed cotton flowers to get matured. “The attack has increased crop losses beyond imagination,” the broker said.
Brokers have estimated crop size at 12-13 million bales (of 155 kilogram each) this year as compared to 14.9 million bales last year.
The KCA has reported traders bought 20,400 bales at Rs4,850 to Rs5,700/maund (37.324 kilogram) as compared to 12,900 bales bought at Rs5,400 to Rs5,400/maund a day ago.