KARACHI: Cotton prices came under pressure on Tuesday as buyers moved to the sidelines. The easy trend noted in world leading cotton markets also had its implication on domestic lint prices. Overall, the underlying sentiment was firm. However the outlook remained uncertain owing to host of factors including shortage of irrigation water for cotton sowing and the current heat wave across the country.
Depleting cotton stocks with ginners and shortage of quality lint should have triggered buying from spinners but this did not happen because exporters are reportedly finding it difficult to thrash out deals with their Chinese counterpart.
There is demand for Pakistani textile goods in the Chinese market but the pricing issue is keeping many deals from being finalised, reported a leading textile exporter.
However, the most worrisome issue for the cotton economy is the ongoing heatwave in the country.
The current hot weather coupled with shortage of irrigation water is bound to harm cotton sowing and will have direct bearing on the size of the next crop, said cotton analyst Naseem Usman.
He suggested that the government departments should become extra vigilant under current circumstances and go for water management to save the next cotton crop.
The Karachi Cotton Association (KCA) spot rates were revised downward by Rs100 to Rs7,500 per maund.
The following deals were reported to have changed hands on ready counter: 400 bales, Sanghar, at Rs6,100; 1,000 bales, Layyah, at Rs6,425; and 800 bales, Faqirwali, at Rs6,450.