Trading on cotton market gains momentum

KARACHI: Trading on the cotton market gained momentum on Tuesday, despite soaring prices in the local and international markets, dealers said.
“Domestic cotton again peaked at Rs13,000 per maund for the second time in two weeks,” said Shakeel Ahmad, a leading cotton trader on the Karachi Cotton Exchange (KCE).
A textile mill owner from Rahim Yar Khan lifted around 1,600 bales of raw cotton on the record-high price, Ahmad said.
The country’s textile sector has already been facing a shortfall of around three million bales due to a heavy loss in floods, he said.
A significant rise in the prices on the cotton exchanges of the US and China led to hike on the local exchange, he said.
On the International Commodity Exchange (ICE), New York the raw cotton for March and May contracts regained 6.65 cents and 7 cents to close at $1.74 and $1.70 per pound, respectively.
The Karachi Cotton Exchange (KCE) spot rates held steady at Rs11,500 per maund and Rs12,325 per 40 kg for average quality lint. Seedcotton (Phutti) prices varied from Rs5,000 and Rs5,300 per 40 kg, depending on trash and moisture retention levels.
The country’s cotton  sales increased to 10,250 bales of raw cotton (of 170 kg each), including 1,600 bales from Rahim Yar Khan; 1,200 bales from Faqirwali; 600 bales each from Vehari, Layyah and Rajanpur; 900 bales from Bahawalpur; 1,000 bales from Shujabad; 400 bales each from Rajanpur, Dera Ghazi Khan, Fazilpur and Ahmadpur; 200 bales each from Shahdan Lund and Ghazi Ghat ranging between Rs10,400 and Rs13,000 a maund and another 1,150 bales from Mirpur Khas; 600 bales from upper Sindh varying between Rs10,500 and Rs1,1650 per maund.

(Source: http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=30088&Cat=3&dt=2/9/2011)