Traders return to cotton market

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KARACHI: Traders staged a comeback at cotton market in Pakistan after the government announced that the supply of electricity to industries in the Punjab would be restored, said a dealer on Tuesday. Industries have been closed for more than 10 days due to power shortages.

 

“Spinning mill owners bought cotton after the government promised to provide power to industries for 18 hours a day,” said Naseem Usman, a broker at Karachi Cotton Exchange.

 

Approximately 80 percent of Pakistan’s textile factories are located in the Punjab. As a result of power outages, there was no cotton trade in the open markets on Monday.

 

However, spinning mill owners bought 7,400 bales on Tuesday at Rs5,825 to 6,000 per maund (37.324 kg).

Khairpur and Rajanpur witnessed highest trade of 2,000 bales each at Rs6,000 to Rs6,100 per maund. Rahim Yar Khan traded 1,000 bales at Rs6,000 to Rs6,100 per maund. Other markets registered trade in the range of 200 to 600 bales each.

 

Moreover, it is estimated that cotton production in India is 11.74 percent lower in the current season. “This situation will also help increase trade in cotton in Pakistan,” said the dealer.

 

The March-13 future contract at the New York Cotton Market increased by 0.48 cents per pound to 75.14 cents.

 

Courtesy:  The News


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