Pakistan: crop update

Mainly hot and humid conditions along with some scattered showers in both Punjab and Sindh have been reported over the weekend. Temperatures are still in the high 30s to low 40s degrees Celsius. The Meteorological Department forecasts a continuation of the heat for the next few days as well as more showers in the north and centre of the country.

Although the crop condition is generally satisfactory, the recent high temperatures have caused plants to shed flowers in some areas and so growers have welcomed the rainfall. Harvesting has continued to expand to more districts in early sowing areas of lower Sindh and parts of Punjab: seed cotton arrivals are now estimated at around 15,000 bales per day. However, since more ginning factories are starting operations every day while arrivals increase only gradually, ginners are having to compete for seed cotton supplies, which has provided support to prices. Business is reported to have taken place between Rs. 7,800 and 9,500 per 40 kgs.

The changes to the sales tax system reported last week may result in a greater proportion of unofficial trade in cotton this year. In consequence, the official crop estimate derived from as per gin arrivals may decline.

Posted in: Cotlook Headlines