Cotton spot rates remain steady

KARACHI: Despite higher demand and prices in the local market, spot rates of cotton remained stable on Tuesday, dealers said.
“Since February 4, spot rates of the Karachi Cotton Association (KCA) remained steady, despite sharp rises in the local and international markets, while local demand for the commodity gained and cotton was sold at the peak level of Rs13,000 per maund in the open market,” said Shakeel Ahmad, a cotton analyst.
“However, rains were reported in many areas of Punjab, while boosting the appeal for cotton and prices started creeping up to make another new record.
However, spot rates at the Karachi Cotton Exchange (KCE) remained unchanged at Rs11,500 per maund and Rs12,350 per 40kg for average-quality lint.
A good number of deals of seedcotton (Phutti) were made in the range of Rs5,000 and Rs5,500 per 40kg in both the cotton growing provinces, Sindh and Punjab, depending upon the quality and variety of cotton.
Moreover, raw cotton for March and May contracts at the International Commodity Exchange (ICE) lost 3.92 cents and 2.50 cents to close at $1.86 and $1.83 per pound, respectively, while reducing appetite for ginned cotton.
Meanwhile, the country’s cotton trade slightly improved to 10,400 bales of raw cotton (170kg each), including 400 bales each from Alipur, Khanewal, Faqirwali, Mian Channu, Burewala, Garh Mahraja and Bhakkar; 800 bales from Mianwali; 1,200 bales from Haroonabad; 600 bales in mill-to-mill deals, varying in the range of Rs12,000 and Rs13,000 per maund, another 400 bales each from Khairpur, Mehrabpur and Ranipur; 800 bales each from Salehpat and Khairpur; and 2,000 bales from Ghotki, ranging in between Rs11,800 and Rs1,2400 per maund.

(Source: http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=31407&Cat=3&dt=2/16/2011)