Cotton prices dropped sharply in line with the global track on the local cotton market on Thursday, dealers said. The official spot rate was down by Rs 100 to Rs 5950, they said. In the ready session, over 40,000 bales of cotton changed hands between Rs 5800-6150, they said. In both Sindh and the Punjab, seed cotton prices were unchanged at Rs 2550-2750 as per 40 kg, they said.

Market sources said that prices went up sharply during one month due to rising fears of likely damages by the hurricanes. But now the fading out of two major hurricanes such as Irma and Harvey without much damage to standing cotton crop in Texas and Georgia left prices under pressure in the world markets, experts said.

Cotton analyst, Naseem Usman, said that the market is under pressure owing to good production of cotton the world over. In the meantime, the ginners were not in favour of new deals at the lower rates. Adds Reuters: ICE cotton futures settled flat on Wednesday after hitting a near three-week low, a day after the US Department of Agriculture raised its global and US production estimates for the 2017/18 crop year.

Cotton contracts for December settled down 0.02 cent, or 0.03 percent, at 69.09 cents per lb. The contracts traded within a range of 68.31 cents, the lowest level since August 25 and 69.46 cents a lb. US cotton output is seen at 21.76 million bales for 2017/18 compared with 20.55 million bales projected last month, the report showed. ICE cotton futures plunged over 4 percent on Tuesday, the biggest one-day fall in a month.

The following deals reported: 1000 bales from Kotri at Rs 5800/5850, 1000 bales from Maqsoodo at Rs 5850/5900, 1600 bales from Hyderabad at Rs 5850/5900, 3000 bales from Sanghar at Rs 5850/6000, 3000 bales from Shahdadpur at Rs 5850/6000, at Rs 2000 bales from Mirpurkhas at Rs 5850/6000, 5000 bales from Tando Adam at Rs 5850/6000, 400 bales from Sinjoro 5900, 600 bales from Sarhari at Rs 5900/5950, 1000 bales from Moro at Rs 6000, 400 bales from New Saeedabad at Rs 6000, 1000 bales from Sakrand at Rs 6000/6050, 2000 bales from Nawab Shah at Rs 6000/6050, 2000 bales from Khairpur at Rs 6000/6100, 1000 bales from Rohri at Rs 6000/6100, 600 bales from Pir Mehal at Rs 6000/6050, 400 bales from Pakpattan at Rs 6050, 400 bales from Samundri at Rs 6050, 600 bales from Sahiwal at Rs 6050, 600 bales from Chistian at Rs 6050/6100, 1200 bales from Bahawalpur at Rs 6050/6100, 1400 bales from Haroonabad at Rs 6050/6100, 600 bales from Bahawal Nagar at Rs 6075, 400 bales from Arifwala at Rs 6075, 1000 bales from Burewala at Rs 6075, 400 bales from Mian Chano at Rs 6075/6100, 800 bales from Chichawatni at Rs 6075/6100, 800 bales from Vehari at Rs 6075/6100, 1000 bales from Tounsa Sharif at Rs 6100, 600 bales from Fazilpur at Rs 6100, 400 bales from Layyah at Rs 6100, 600 bales from Mianwali at Rs 6100, 1000 bales from Rajanpur at Rs 6100/6150 and 600 bales from Ahmedpur at Rs 6100/6150, dealers said.

===========================================================================

The KCA Official Spot Rate for Local Dealings in Pakistan Rupees

---------------------------------------------------------------------------

FOR BASE GRADE 3 STAPLE LENGTH 1-1/16"

---------------------------------------------------------------------------

                                    MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL

===========================================================================

Rate              Ex-Gin   Upcountry   Spot Rate    Spot Rate    Difference

                    For      Price     Ex-Karachi  Ex. KHI. As   Ex-Karachi

                                                  on 13.09.2017

===========================================================================

37.324 kg         6,950       145         6,095        6,195        - 100/-

Equivalent

40 kgs            6,377       155         6,532        6,639        - 107/-

===========================================================================

Copyright Business Recorder, 2017