Cotton price rises to new record high

KARACHI: Cotton price rose Rs200 to a fresh peak of Rs12,000 per maund (37.324 kg) in a lacklustre market on Monday as the New York cotton exchange was closed for a public holiday, a dealer said.

Though cotton prices fell from a record high of $2.04 to $1.97 per pound in the New York exchange, it did not affect the domestic market. However, the dealer said if the US market falls further, cotton prices in the Karachi market would also decline.

Cotton market analyst Shakil Ahmed said prices may come down but they will not fall below Rs11,000 as mills need cotton to meet their requirements. “The season is coming to a close but still 100 ginning factories are running in the country,” he said. At the start of the season, around 1,000 mills were operating across the country.

Prices have also increased because of lower-than-expected production of about 12 million bales this season after floods damaged cultivated crops last summer. So far, farmers have supplied 11.38 million bales to the market.

(Source: http://tribune.com.pk/story/121886/cotton-price-rises-to-new-record-high/)