Cotton spot rate hits record high of Rs12,500

KARACHI: Spot rate of average-quality lint hits an all-time high of Rs12,500 per maund on Monday because of a dramatic increase in the international market, dealers said.
Spot rate at the Karachi Cotton Association (KCA) surged by Rs500 to touch a record high of Rs12,500 per maund, surpassing the previous record high of Rs12,000 per maund on February 21.
“Commodity prices are skyrocketing in both the main markets, the United States and China where the demand for raw cotton has significantly gained due to short supplies,” said Shakeel Ahmed, a cotton analyst.
“Rise in the international commodity markets took domestic prices to the highest level of Rs12,500 per maund for average-quality lint, while good quality cotton is not even available at Rs14,000 per maund.
In the upcoming days, local cotton prices will hover around Rs15,000 per maund on credit and Rs14,000 per maund in cash in the open market on account of healthy demand and short supply in the country.”
He also said that around 54 out of 1,212 ginning factories are working in both the cotton growing provinces, Punjab and Sindh.
However, 10-12 factories are due to shut their operations during the next 15 days as the cotton season for 2010/11 is nearing completion.
The country’s cotton sales sharply declined to 800 bales of raw cotton (170kg each), including 400 bales each from Rahim Yar Khan and Fazilpur at Rs14,000 per maund.

(Source: http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=34898&Cat=3&dt=3/8/2011)