Steadier trend seen as prices remain range-bound on cotton market

KARACHI (January 20 2010): Steadier trend was again witnessed on the cotton market on Tuesday as demand was good despite the fact cotton production has surpassed the target of 12 million bales for the current season, dealers said. The Karachi Cotton Association (KCA) official spot rate was unmoved at Rs 4,575, dealers said.

In the ready business over 6000 bales of cotton changed hands between Rs 4500-4700. Phutti prices in both the Punjab and Sindh were at Rs 2000-2300, they added. Some brokers said that mills indulged in cautious buying of cotton and exporters were conspicuous by their absences, if the exporters enter the arena, prices will go up in the near future.

Another factor is that despite the good production, the country may need to import cotton to meet the demand, they added. The cotton market in the New York was closed for the Martin Luther King Jr. holiday.

THE FOLLOWING DEALS WERE REPORTED: 500 bales of cotton from Shahdadpur sold at Rs 4500, 200 bales from Odero Lal at Rs 4500, 2000 bales from Upper Sindh at Rs 4650, 1200 bales from Rajan Pur at Rs 4650, 600 bales from Jalal Pur at Rs 4650 and 1400 bales from Rahim Yar Khan at Rs 4640 - 4700.