Raw cotton prices remain stable

KARACHI: Cotton prices remained stable on Saturday, despite a decline in the commodity prices at the International Commodity Exchange (ICE), New York, dealers said.
“Sellers are on the strong position due to shortage of the commodity in the country as they generally ask higher prices for ginned cotton,” said Shakeel Ahmed, a leading cotton trader at the Karachi Cotton Exchange (KCE).
“Good quality produce is selling at around Rs10,200 per maund in the domestic market, while low quality cotton is being sold at Rs9,500 per maund.”
Spot rates at the Karachi Cotton Exchange remained steady at Rs9,900 per maund and Rs10,610 per 40kg for average-quality lint.
Seedcotton (kapas) price fell to Rs4,500 per 40kg from Rs4,700 a day earlier because of the forecast of rains in several cotton growing areas of the country.
Moreover, cotton for March and May contracts declined 2.62 and 3.09 cents to settle at $1.41 and $1.36 per pound for the second straight day, respectively, at the International Commodity Exchange (ICE), New York, while curbing appetite for the commodity.
Meanwhile, highlighting the country’s output, Dr Zafar Hassan, a former KCA chairman, said that seedcotton arrivals at ginneries stood at 10.240 million bales as on January 1 against 11.931 million bales registered during the corresponding period last year, indicating a decline of 14.2 percent.
“Mill-owners are facing shortage of cotton and the total output of the country’s crop is estimated to be more than 11 million bales by the end of the season 2010/11.”
He said that the total size of the crop would go up to 15-16 million bales during the next season 2011/12 due to the use of Bt cottonseed, if any natural calamity did not take place.
The country’s cotton sales stood at 8,200 bales of raw cotton (170kg each), including 200 bales each from Shujabad, Haroonabad, Bhakkar, Shahdan Lund and Shahjamal; 400 bales each from Sadiqabad, Hasilpur, Taunsa Sharif, Fazilpur, Alipur and Mianwali; 800 bales from Rahim Yar Khan, varying between Rs9,600 and Rs10,200 per maund, 2,000 bales from upper Sindh; 400 bales from Ghotki; and 800 bales each from Sanghar and Shahdadpur, varying in between Rs9,500 and Rs10,200 per maund.

(Source: http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=25867&Cat=3&dt=1/16/2011)