Local cotton markets in Pakistan witnessed drop in price of cotton to one month low at Rs4,800/maund (37.324 kilograms) as textile mill owners avoided bulk buying on Thursday.

The Karachi Cotton Association kept its official rate unchanged for the third consecutive working day at Rs4,500/maund. It reported maximum price at Rs4,780/maund from Rs4,825/maund a day ago.

Traders bought 9,400 bales at Rs4,550 to 4,780/maund as compared to 10,200 bales bought at Rs4,500 to Rs4,825/maund a day ago, the Association added.

According to a broker at Karachi Cotton Exchange, markets should have showed increase in demand in August. However, slowdown in sales of cotton yarn has not allowed yarn manufacturers to take hefty positions.

On global front, price of cotton at the world leading market, New York, surged considerably. The October futures contract increased by three cents to 65.71 cents per pound, while December futures contract improved 2.87 cents to 64.69 cents per pound,.