Cotton prices up by Rs2,000 per maund

KARACHI: Cotton price rose by Rs2,000 per maund during the last week owing to the historic increase in the international cotton market where contracts at New York crossed the $2.12 per pound mark, dealers said on Saturday.
Demand for cotton from local textile and spinning mills increased during the week, which also pushed up the prices. The failure of Indian importers to supply cotton booked by Pakistani buyers continued to weigh heavily on the local prices, said Naseem Usman, a dealer based in Karachi.
The price of high-quality cotton hit Rs14,000 per maund with an increase of 2,000 rupees.
The rate for high-quality seed cotton (phutti) went up by Rs600 to Rs6,400 per 40 kilogram because of the short supply.
The total cotton production is expected to reach 11.6 million bales this year, another dealer said.
Ginner currently have only 0.4 million bales in their stocks which is sufficient for only 10 days, the dealer added.
Textile and spinning mills fear that the supply of cotton from the new crop could be affected by rains in coming weeks.
Spot rates at the Karachi Cotton Association (KCA) also remained steady at Rs12,000 per maund and Rs12,860 per 40 kg for average-quality lint.

(Source: http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=34553&Cat=3&dt=3/6/2011)