Prices continued to fall on the cotton market on Wednesday due to lack of buying interest by mills and spinners, dealers said. The official spot rate shed more Rs 50 to Rs 5,250, dealers said. In Sindh, seed cotton prices were at Rs 2200 and Rs 2800 and in the Punjab, rates were at Rs 2300 and Rs 3000, they said. In the ready business, around 8,000 bales of cotton finalised between Rs 4800 and Rs 5600, they said.
Cotton analyst, Naseem Usman, said that most of the leading buyers were on the sidelines in the absence of motivating factors. Cotton traders were facing financial crisis due to high cost of production, besides low returns, he added. In India and China prices are firm but in Pakistan situation is in reverse gears due to huge unsold stock of cotton yarn, other analysts said.
They surprised over the fresh decline in the prices, the dollar is gaining ground and this was solid reason for the rise in cotton demand, but this factor could not materialise. According to reports, locally, agriculture experts have advised farmers to destroy remains of cotton crop from their fields after last picking to eliminate pests that survive on cotton remains and damage the next crop.
Reuters adds: Cotton prices advanced on ICE Futures US on Tuesday, regaining much of the prior day’s losses on demand in the cash market and worries over supplies of high-grade cotton in the United States, the world’s largest exporter. Prices of crops like soybeans, with which cotton competes for acreage, were also higher, lending support. Cotton prices advanced on ICE Futures US on Tuesday, regaining much of the prior day’s losses on demand in the cash market and worries over supplies of high-grade cotton in the United States, the world’s largest exporter.
The March cotton contracts on ICE settled up 0.9 cent, or 1.4 percent, at 63.54 cents per lb. The following deals reported, 400 bales from Khairpur at Rs 5350, 1200 bales from Salehpat at Rs 5375-5450, 400 bales from Ghotki at Rs 5550, 1000 bales from Bahawalpur at Rs 5200, 400 bales from Faqirwali at Rs 5200, 500 bales from Fort Abbas at Rs 5250, 400 bales from Haroonabad at Rs 5250, 400 bales from Chistian at Rs 5250, 400 bales from Hasilpur at Rs 5300, 200 bales from Yazman Mandi at Rs 5350, 400 bales from Fazilpur at Rs 5450, 600 bales from Mianwali at Rs 5500, 600 bales from Shadan Lund at Rs 5600, 400 bales from Lodhran (Low quality) at Rs 4800 and 400 bales from Ahmedpur East (Low quality) at Rs 4825, dealers said.