Weekly Cotton Review: Prices are steady; trading volume improves

Cotton rates in Pakistan held firm over the week, according to Business Recorder, after an earlier advance, while dealers noted that trade volumes picked up noticeably. The Spot Rate Committee of the Karachi Cotton Association lifted the spot rate by Rs600 per maund, closing it at Rs19,400. Analysts expect thin seed cotton supply and ginners' outstanding deliveries of thousands of bales to hold rates firm for now.

Overseas, New York contracts swung in a band of 82.38 to 89 American cents a pound across the week. Imported cotton consignments have been held up by a conflict that includes Iran, the United States and Israel, and APTMA says demurrage on containers at ports keeps rising. Export data showed textile shipments dropped 12.71 percent in August from July, reaching 1.60 billion dollars, yet grew 4.76 percent year on year.

The Federal Board of Revenue has announced Rs126 billion in refunds for industries, a move industry leaders welcomed while they say high energy prices and transport costs continue to weigh on manufacturers. Ginning factories are under acute strain with many shut and workers laid off, while cotton acreage fell 11 percent in Sindh and 18 percent in Punjab for the 2026-27 season.