KARACHI: The Karachi Cotton Association (KCA) raised spot rate of average-quality lint by Rs200 to Rs9,700 per maund on Tuesday for the second straight day because of a gap between supply and demand, dealers said. “The cotton supply has fallen to around 40,000-50,000 cotton bales daily in the market coming from 350 out of 1,212 ginning factories across the country as factories have started to shut their operations,” said Naseem Usman, Chairman, Karachi Cotton Brokers Forum. “The commodity supply is tapering off day-by-day as the season for 2010/11 is on the verge of completion, while the demand for cotton is increasing in the local and international markets.” Despite rising commodity prices, the domestic market witnessed brisk cotton trading as mill-owners bought ginned cotton in a good number of lots, but ginners were finalising a few deals, hoping for further higher prices in the days to come. “Commodity prices are going up, while China, the main buyer in the world, is celebrating its holiday season from January 1 to 10, after holidays in China, cotton rates are due to rise further, so local ginners are selling their stockpiles in a small number.” However, seedcotton (Kapas) is being sold in the range of Rs3,900 and Rs4,500 per maund per 40kg, depending on the quality produce in the country. Moreover, raw cotton for March and May contracts lost 2.61 and 1.31 cents to close at $1.42 and $1.36 per pound, respectively, at the International Commodity Exchange (ICE). Meanwhile, the market turnover swelled to 34,400 bales of raw cotton (170kg each), including 2,600 bales from Ghotki; 2,200 bales from Dehrki; 400 bales each from Rohri, Rasoolabad and Kotri; 1,000 bales each from Salehpat and Khairpur; 800 bales from Sakrand; 1,200 bales from Nawabshah, 5,000 bales from upper Sindh, varying between Rs9,500 and Rs10,000 per maund, another 1,800 bales from Mianwali; 800 bales each from Alipur and Liaquatpur; 1,000 bales from Shujabad and another 1,000 bales in mill-to-mill deals; 600 bales each from Taunsa Sharif and Haroonabad; 400 bales each from Khanpur, Dera Ghazi Khan, Duniapur, Khanewal and Chichawatni; 2,600 bales from Rajanpur; 600 bales from Haroonabad; 1,600 bales from Faqeerwali; 2,200 bales each from Bahawalnagar, 2,200 from Sadiqabad; 200 bales each from Haroonabad and Dera Ghazi Khan; and 1,200 bales from Rahim Yar Khan, ranging between Rs9,500 and Rs10,000 per maund.
