Traders buy low quality cotton

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KARACHI: Trade turnover of cotton and its prices remained stable with some buying seen in low quality cotton, a dealer said on Thursday.

 

“Traders are seen shifting their focus on low quality cotton at a time when the stocks of high quality cotton are depleting with their prices skyrocketing,” a trader at the Karachi Cotton Exchange (KCE) said.

 

Muridwala and Chichawatni were the two stations that reported trade in low quality cotton. The stations traded 800 bales and 400 bales, respectively, at Rs5,000 to Rs5,475 per maund (37.324 kilograms), the KCE reported.

 

The broker said that the price of high quality cotton have surged up to Rs7,200 per maund in cash and Rs7,500 per maund on credit. Therefore, some spinning mill-owners accumulated low quality cotton to keep their mills running.

 

Traders exchanged a total 9,936 bales (155 kilograms each) at Rs5,000 to 7,450 per maund as compared to 9,535 bales at Rs6,500 to Rs7,500 per maund a day ago, it said.

 

Meanwhile, the KCE maintained its cotton spot rate unchanged for the second consecutive day at Rs6,900 per maund.

 

Rahim Yar Khan witnessed the highest trade of 3,000 bales at Rs6,600 to Rs7,150 per maund followed by Khanewal, which traded 1,000 bales at Rs7,450 per maund on credit, the KCE reported.

 

Other markets traded the minimum of 200 bales and the maximum of 800 bales, it said.

 

The broker said that the markets will remain stable in the remaining three months (April-June) of the ongoing fiscal year 2013, as the commodity’s cultivation season is almost over now for the year. “The next crop of cotton will start arriving in the market from July onwards.”

 

At New York cotton market, May futures contract fell by 2.03 cents per pound to 89.10 cents, while July futures contract declined by 1.58 cents per pound to 89.95 cents, the KCE reported.



Courtesy:   The News

 


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