Pakistan: crop update

The Monsoon season has now ended and the recent showers in many areas of Punjab have subsided, allowing hot and dry conditions to return to much of the cotton belt. Daytime temperatures continue to reach the high 30s Celsius. The Meteorological Department has forecast that the current conditions will prevail for the next few days.

Growers have welcomed the return of dry conditions as the wet weather had reduced the quality of arrivals in some areas. A slight drop in temperatures is now hoped for to help the standing crop. As already reported, damage has also been caused by whitefly infestations, and the opinion is circulating within trade circles that more measures should be taken (such as the availability of pest-resistant, good-quality seeds) to reduce the impact of the excessive rains and pests that frequently plague growers.

Most private output forecasts have been lowered to around 8/8.5 million local-sized bales, while it is estimated that well over a million bales may be traded outside the formal system and thus would not be included in official figures.

Arrivals of new crop seed cotton have continued to reach gin yards at a moderate though unsteady pace over the past week as growers have aimed to release larger volumes when prices move higher to achieve better returns. Daily deliveries are currently estimated at around 65,000/75,000 bales. However, volumes are expected to drop shortly as a result of the aforementioned damage and the earlier movement of the crop this year. Ginners have continued to buy seed cotton cautiously. Recent business has been reported around Rs. 6,500/8,800 per 40 kilos, depending on the quality.

Posted in: Cotlook Headlines