The local cotton market remained under pressure on Monday, as it continued to fall from the previous weeks, while the trading volume remained low as cautious feelings continued among the market participants.
According to Naseem Usman, cotton analyst, cotton prices in the bond currently fluctuate between 17,700 and 1700 rupees per mand, while prices are reported in Punjab in a similar range. Despite these continuous fluctuations, the immediate price remained unchanged at 17,500 rupees per end, indicating some degree of stability in the market.
This current declining stage represents a sharp contradiction with the previous periods in 2024, as cotton prices have increased due to supply fears and increased demand from local and international markets. For several months, there were increasing expectations of price increase due to weak harvest in the main areas that produce cotton worldwide and anxiety over climate effects on crops. Local cotton production, especially in the bond, was exposed due to harmful weather conditions, which led to pressure in the supply, causing cotton prices to rise dramatically.
However, in recent weeks, the market has begun to see a correction, with prices declining from the highest levels it witnessed earlier. Analysts attribute this shift to several factors, including improved cotton harvesting in the main areas, alleviating the fears of the global supply chain, and slowing the demand from international markets. With the stability of cotton production in major fields such as the United States and India, global exhibition pressures decreased, which led to a decrease in price expectations.
In the bond, where the cotton was strongly affected by weather conditions earlier, the market is now witnessing a slightly more stable production levels, which somewhat reduced the price pressures. However, fluctuation remains, with local farmers and traders continuing to deal with volatile global prices and the effects of crop revenues last season.
The polyester fiber market also showed stability, as prices were reported at 351 rupees per kilogram, and continued to track the wider basic commodity trends. The lack of a large movement in the fiber sector is in line with the total market conditions that affected multiple cotton sectors.
Despite recent price fluctuations, analysts are still cautious, as many merchants hope to obtain clearer signals in the coming weeks to determine the future direction of the market.
