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Decline In Cotton Yield May Boost Prices (Pakistan)

2013-9-26

Decline in cotton production by Cotton Crop Assessment Committee (CCAC) is likely to give a boost to prices, dealers on the cotton market said on Monday. The official spot rate was inert at Rs 6,900, they said. Prices of low type of seed cotton in Sindh and Punjab per 40 kg were firm at Rs 3,100, while the best variety was up by Rs 50 to Rs 3300, dealers said. In the ready session, around, 11,000 bales of cotton changed hands between Rs 6950-7050, they said. Some analysts said ginners might try to increase prices after a downward revision by the CCAC. The CCAC forecasted a decline in cotton production at 11.95 million bales for the Season 13-14. Earlier, the ICAC had projected cotton production at 12.68 million bales. In the beginning of the season, the committee had projected cotton production nearly at 13.25 million bales.

Cotton analyst, Naseem Usman said that prices stabilised on the local market following the news of heavy rains in Indian cotton belt. So, ginners expectedly, adopt cautious attitudes to avail an opportunity to make profits, which would help them to make a balance between huge losses and little profit due to huge cost of production, he observed.

Source:Business Recorder
 
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