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KARACHI (June 18 2010): Rates went up on quality factor on the cotton market on Thursday amid expectations of good crop for the new season, experts said. The Karachi Cotton Association (KCA) official spot rate was raised by Rs 100 to Rs 6,400. In the ready business, nearly 5000 bales of cotton changed hands between Rs 6500-6700, they said.
Market sources said that the price direction is most likely to depend on demand and supply and other important thing is developing situation on the local and international fronts. The ginners, who have very small unsold stock of cotton, are selling at the higher rates due to quality factor and its seems that the prices may show stable trend in the coming days, some analysts said.
Naseem Usman said that nearly six factories in Punjab may start functioning in the last week of the current month and then trading activity will also pick up. On Wednesday the NY cotton futures closed mixed as switch business dominated dealings while traders awaited Thursday's government sales report, analysts said.
The key December cotton contract added 0.08 cent to finish at 79.70 cents per lb, dealing from 79.33 to 79.90 cents. On a third position basis, it was the loftiest close for cotton since early May. Volume traded in the contract stood at 9,232 lots at 2:33 pm EDT (1737 GMT). Spot July slipped 0.20 cent to end at 81.77 cents. The following deals were reported as some 2000 bales of cotton, 1200 bales (mill to mill) at Rs 6500, 400 bales (mill to mill) 6700 and 1600 bales from Rahim Yar Khan at Rs 6700 (one month credit), they said.
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