Cotton plunges to Rs5,000 per maund this week

KARACHI: Cotton price has plunged by Rs1,000 to Rs5,000 per maund in Sindh this week due to depressed market on over supply, brokers said here Saturday.

Member of Cotton Brokers and Advisory Committee Amir Naseem said that cotton supply exceeds the demand which plummeted its prices in the market. Cotton price has fallen by a record Rs3,800 during the season, he added.

He said spot rates of Karachi Cotton Association (KCA) has declined by Rs700 per maund to Rs5,500 per maund on July 23, 2011 on lack of interest by the mills and exporters.

Amir said cotton was selling at Rs5,000 to Rs5,200 per maund in Sindh and Punjab. Similarly, good quality new phutti price was selling at Rs2,200 to Rs2,400 per 40 kg in Sindh and Punjab, he noted.

Binola price also closed lower at Rs850 to Rs900 per maund in Sindh and Punjab.

Amir said that New York Cotton Futures rates have dropped below $ 1 per pound due to bumper crop in major cotton producers including China, USA, India, Brazil and Australia. They are expected to range between 75 to 80 cents a pound, he observed.

Copyright APP (Associated Press of Pakistan), 2011