Thursday 16 January 2014

Cotton Prices Rise As Buying Revives

Revival of buying interest from leading spinners pushed cotton prices higher on Thursday. The ginners who had been reluctant to dispose of their stocks readily obliged buyers at higher price calls.



However, trading remained focused on quality lint as spinners were keen to build upon their stocks to meet expected higher export commitments owing to free-market access to European Union and larger orders booked in Heimtextil fair in Germany, brokers said.



Analysts believe that higher off-take of cotton from spinners earlier this season has now left little stock with ginners.



There are strong indications that this season the country will have to import higher quantity of cotton to meet export contracts of value-added textile sector and also of semi-finished textile goods in the form of higher count yarn to the EU market.



The world cotton markets also remained firm because of strong demand for cotton where New York cotton rose further for all future contracts. Despite having bumper cotton crop, the price of Indian cotton was also showing upward trend on strong domestic demand and higher cotton yarn imports from China.



The Karachi Cotton Association (KCA) raised its spot rates by Rs50 to Rs7,050 per maund, which is the highest in the current season.



Trading on ready counter was fairly brisk and the following major deals were reported to have changed hands: 400 bales, Kazi Ahmed at Rs7,000, 400 bales, Daulatpur, at Rs7,125, 200 bales, Daur at Rs7,200, 200 bales, Pano Akil, at Rs7,200, 400 bales, Faqirwali, at Rs7,000, 400 bales, Khanewal at Rs7,100, 400 bales, Sadiqabad at Rs7,150, 400 bales, M. Pur Dewan, at Rs7,200, 400 bales, Rajanpur at Rs7,200, 2,800 bales, Rahim Yar Khan, at Rs7,200 and 600 bales, Mianwali, at Rs7,200 to Rs7,250.


Source:- dawn.com





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