cotton prices hit all-time high level

karachi  (january 26, 2011) : cotton prices hit all-time high on the local market on tuesday because of non-stop rise in the prices on the international market, dealers said. as a result, the karachi cotton association (kca) spot rate raised by record rs 500 in a single day rally at rs 10,600, they said.
traders of grain markets in punjab, including ginners are still on strike so the phutti prices were not available, they said. in ready business prices shot up as about 15,000 bales ofcotton changed hands between rs 10,300-11,800 and also heading to make new records, they added.
according to the market sources, cotton prices are on upward march in china, india and us market, so the same trend is dominating domestic market and it is likely that the firm trend may obtain in the coming days. mills got paniced due to short supply and made buying as much as they can do in anticipation of further increase in the prices of cotton, they said.
the ginners were still hoping for higher prices despite the fact that prices are breaking record, they added. commenting on the strike on punjab grain market, some experts were of the view that present issue with the traders of cotton may settle and grain markets may open very soon. this factor will improve activity as ginners will start buying cotton, now-a-days they are on the sidelines, they said.
on monday the us cotton futures climbed the daily trading limit for the second straight session on speculative buying fuelled by strong chinese prices and tight deliverable supplies, analysts said. cotton was the best performing commodity of 2010 in the reuters-jefferies crb commodity index as it rose over 90 percent, and is the top performer so far in 2011. cotton is now trading at its highest level since the us civil war. the key march cottoncontract on ice futures us rose the five-cent limit to trade at $1.6194 per lb at 10:06 am est (1506 gmt). the session low was at $1.605.
the following deals were reported: 200 bales of cotton from tando adam sold at rs 10500, 1000 bales of cotton from khair pur at rs 10700-10800, 400 bales of cotton from mir pur mathelo at rs 11000, 400 bales of cotton from saleh pat at rs 11000, 400 bales of cottonfrom ghotki rs 11000, 800 bales of cotton from ghotki (3 month credit) at rs 11800, 400 bales of cotton from deharki (3-month cr) 11800, 400 bales of cotton from rohri (3 month cr) at rs 11800, 800 bales of cotton from haroonabad at rs 10000, 400 bales of cotton from kehror pacca at rs 10300, 400 bales of cotton from layyah at rs 10400, 200 bales of cottonfrom shadan lund at rs 10400, 400 bales of cotton from ali pur at rs 10450, 800 bales ofcotton from shujabad at rs 10800, 400 bales of cotton from shah jamal at rs 11000, 800 bales of cotton from mian wali at rs 11000, 400 bales of cotton from bahawal pur at rs 11000, 400 bales of cotton from ali pur at rs 11000, 1400 bales of cotton from rajan pur at rs 11000, 1600 bales of cotton from dera ghazi khan at rs 11000, 400 bales of cotton from rajan pur at rs 11000 and 800 bales of cotton from duniya pur at rs 11000.

(Source: http://www.brecorder.com/news/cotton-and-textiles/pakistan/1148168:cotton-prices-hit-all-time-high-level.html?hl=cotton)