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KARACHI (July 03 2010): Short supply caused further rise in the prices and it is most likely that present trend may continue in the coming days, dealers said on the cotton market on Thursday. The Karachi Cotton Association (KCA) official spot rate maintained its surge, gaining further Rs 50 to Rs 6,700, they said.
Nearly 1200 bales of cotton changed hands between Rs 6665-6825, they said. Phutti prices were up at Rs 2950-3200 in Punjab and in Sindh the rates were also higher by Rs 50 to Rs 2950-3000, they added. Market sources said that despite reports about increase in sowing in the United States and falling trend in prices, the mills are trying to make deals in a big way on expectations of further increase in the rates.
Commenting on the future direction of price, Naseem Usman said "rates are going up on daily basis, so we can expect that prices may hit the new high at Rs 7000 next week or ahead of days". In the meantime, the growers and ginners look satisfied under the present circumstances, some brokers said.
The International Cotton Advisory Committee (ICAC) secretariat said on Thursday that farmers will boost global cotton production in 2010/11 as they move from less profitable grains on oilseeds and increase cotton plantings. In a monthly report it said that cotton prices jumped 28 percent in 2009/10 to the highest level in 13 years as stocks dwindled. Prices are expected to climb another 12 percent in 2010/11 to 87 cents per lb.
On Thursday the NY cotton futures settled slightly higher, rebounding from the previous session's three-week low that was hit after a government plantings estimate suggested the biggest US cotton crop in three years. The key December cotton contract gained 0.07 cent to close at 76.45 cents per lb, trading in a range from 75.17 to 77.26 cents.
On Wednesday December posted the biggest one-day loss for cotton since February 25. Volume traded in the December contract Thursday stood at 15,840 lots at 2:29 pm EDT (1829 GMT). The following deals were reported : 200 bales of cotton from Burewala at Rs 6800, 200 bales from Chichawatni at Rs 6825, 200 bales from Haroonabad at Rs 6800, 200 bales from Pakpattan at Rs 6775, 200 bales from Burewala at Rs 6800 and 200 bales from Pakpattan at Rs 6665.
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