Lint prices touch Rs 10,000 mark again, spot rate at Rs 9,700 on cotton market

KARACHI  (January 05, 2011) : Active mills and exporters buying was again seen on the cotton market on Tuesday as expectations are faded for falling trend in the prices, brokers said. The Karachi Cotton Association (KCA) spot rate was again raised by Rs 200 to Rs 9700, they said.

Seed cotton prices in Sindh and Punjab were at Rs 3,900-4,500, they said. In ready business approximately 23000 bales of cotton changed hand between Rs 9400-10,000, they added. Some experts said that it is interesting to note that despite the bearish trend in the international market the prices were going up in the domestic market, which is a little bit unusual. In the meantime, mills indulged in fresh buying of cotton and it is likely that prices may maintain higher trend in the coming days, they said.

According to the Pakistan Cotton Ginners Association (PCGA) released its fortnightly report till December 31, the country has produced about 10.240 million bales as compared to 11.930 million bales recorded last year, showing a shortage of 1. 7 million bales, they said. Market sources said it looks that short supply and speculative rise in the international market have joined hands to create crisis like conditions in the world textile industry. Experts said that major consumer countries feared to be wiped out from the textile export front.

According to a report cotton harvesting has accelerated in India and arrivals at spot markets so far in the 2010/11 season rose by 8.2 percent on year, the state-run Cotton Corp of India said on Monday. Arrivals as on January 2 stood at 13.69 million bales of 170 kgs each compared to 12.65 million bales a year ago as weather was dry over key growing states like Maharashtra and Gujarat, the government body said on its website.

Besides, Turkmenistan has revised its 2010 raw cotton harvest to 1.3 million tonnes from 1.0 million tonnes, a government official told Reuters on Monday, saying good weather was a major factor behind the higher crop. On Monday, the first trading day of the new year, US cotton futures finished quietly lower, reversing lower in options-related trade following recent volatile dealings that pushed the market up nearly 92 percent in 2010, dealers said.

The key March cotton contract on ICE Futures US closed down 2.61 cents to finish at $1.4220 per lb, in a wide trading range from $1.4137 to $1.4650 a lb. Total volume, however, was thin at 15,541 lots as many markets in other countries were closed after the New Year holiday fell on the weekend.

The following deals were reported: 1000 bales of cotton from Nawabshah at Rs 9600-9700, 1000 bales of cotton from Khair Pur at Rs 9800-9900, 5000 bales of cotton from Upper Sindh at Rs 9700-10000, 400 bales of cotton from Haroonabad at Rs 9400, 200 bales of cotton from Chichawatni at Rs 9500, 2200 bales of cotton from Bahawal Nagar at Rs 9500, 800 bales of cotton from Faqirwali at Rs 9500, 400 bales of cotton from Khanewal at Rs 9700, 1200 bales of cotton from Rahim Yar Khan at Rs 9700-9800, 200 bales of cotton from Dunia Pur at Rs 9750, 800 bales of cotton from Liaquat Pur at Rs 9800, 600 bales of cotton from Tounsa Sharif at Rs 9800, 400 bales of cotton from Khan Pur at Rs 9800, 400 bales of cotton from Head Bekani at Rs 9800, 2000 bales of cotton from Rajan Pur at Rs 9700-9800, 200 bales of cotton from Dera Ghazi Khan at Rs 9800, 2200 bales of cotton from Sadiqabad at Rs 9800-9900, 400 bales of cotton from Ali Pur at Rs 9900, 1800 bales of cotton from Mian Wali at Rs 10000 and 1000 bales of cotton from Shujabad at Rs 10000.