Cotton rates decline

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KARACHI: The price of cotton slightly fell at the open market in line with the declining trend at the international markets, said a dealer on Friday.

 

“The cotton price fell at the local markets after price of futures contract of the commodity declined at New York cotton market,” said Shakil Ahmed, a broker at the Karachi Cotton Exchange (KCE).

 

The minimum price of cotton fell to Rs5,700 per maund (37.324 kilogram)from Rs5,800 a day ago. Similarly, the maximum price dropped to Rs6,050 per maund from Rs6,100.

 

March futures contract decreased by 0.56 cents to 74.56 cents per pound at New York cotton market, while May futures contract declined by 0.49 cents to 75.51 cents per pound at the exchange, according to the KCE report.

 

The KCE, however, kept its spot rate unchanged for the sixth consecutive day at Rs5,850 per maund.

Spinning mill-owners bought around 19,000 bales against 19,600 bales bought a day ago, according to the KCE.

 

Upper Sindh and Rahim Yar Khan witnessed highest trade of 3,000 bales each at Rs5,950-6m000 per maund.

 

Bandhi, Khairpur, Haroonabad, Bahawalpur, Sadiqabad, Khanpur, Ahmedpur and Rajanpur also traded significant number of bales at Rs5,700-6,050 per maund, it added.

 

The broker said that the local cotton markets would continue to follow the pricing trend of the world markets till the end of February 2013. However, this price linkage between the local market and world markets would come to an end during March-April 2013, he said. “The crop season would have been ended in Pakistan in February 2013 and those who would have stocked cotton for resale would ask for a higher price.”

 

Besides, issues of quality and weather would also favour hoarders to get higher price for the commodity, he added.

 

Courtesy:  The News


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