Cotton prices fall Rs1,500 in a week

Market faces dearth of quality cotton.

KARACHI:

Cotton spot rate has dropped by Rs1,500 in the last one week as the market faces a dearth of quality material amid an increase in the value of rupee against the dollar, discouraging exports, according to a dealer at the Karachi Cotton Exchange.

On Saturday, the cotton spot price stood at Rs10,500 per maund (37.325 kg) compared with Rs12,000 last Saturday.

“Though a good quantity of cotton was available in the market, quality material was lacking,” said cotton market analyst Shakil Ahmed.

In addition to this, he said, the rupee’s appreciation to around 84.4 against the dollar, compared with 86 earlier, discouraged cotton exporters, who might see their profits fall.

Ahmed said the New York market had also come down after China reduced purchases due to slowdown in exports to earthquake-hit Japan.

In Pakistan, the cotton season is coming to an end and so far 11.2 million bales have reached the ginning factories. Final output is expected to be around 12 to 12.5 million bales.



Published in The Express Tribune, April 24^th, 2011.