Cotton Market Under Pressure as Prices Fluctuate in Sindh and Punjab

The local cotton market faced continued pressure on Monday, extending its downward trend from previous weeks. Trading activity remained subdued as market participants adopted a cautious approach amid ongoing uncertainty.

According to cotton analyst Naseem Usman, cotton prices in Sindh are ranging between Rs16,700 and Rs17,800 per maund, while Punjab prices are reported within a similar bracket, fluctuating between Rs17,000 and Rs17,800 per maund. Despite these variations, the Spot Rate has held steady at Rs17,500 per maund, reflecting some level of market stability.

Earlier in 2024, cotton prices had surged due to supply constraints and increasing demand, both locally and internationally. Poor harvests in major cotton-producing regions and climatic challenges had fueled price hikes. Sindh, in particular, suffered from adverse weather conditions, which contributed to supply shortages and rising costs.

However, in recent weeks, the market has witnessed a correction, with prices easing from their previous highs. Analysts attribute this decline to improved harvests in key regions, a reduction in global supply chain disruptions, and lower international demand. Stabilized cotton production in major countries like the United States and India has helped relieve supply pressures, leading to moderated price expectations.

Sindh, previously affected by weather-related crop losses, has seen a relative improvement in production, bringing some relief to the market. Nevertheless, volatility persists as farmers and traders navigate fluctuating global prices and the lingering effects of the previous season’s poor yield.

Meanwhile, the polyester fiber market has remained stable, with prices holding at Rs351 per kilogram. This trend aligns with the broader commodity market, which continues to experience subdued conditions across multiple sectors dependent on cotton.

Despite recent price shifts, analysts remain cautious, with traders awaiting clearer market signals in the coming weeks to assess the future trajectory of cotton prices.

Source: Profit.Pakistan