Cotton rises

Karachi

Cotton demand remained higher on Tuesday, as 41,000 bales were traded in Sindh and Punjab regions. The spot rates at the Karachi Cotton Exchange closed flat at Rs6,050/maund, while the commodity was actually traded at the rates ranging from Rs5,900/maund to Rs6,300/maund.

Dealers said the demand was higher from the millers and exporters, as there would be increased demand of made-ups world over on the occasion of Christmas. The demand is increasing by the spinners to meet the orders from other textile and garment manufacturers.  Growers have sown more corn and sugarcane this season and reduced cotton acreage.

Corn and sugarcane producers benefit from tariffs that insulate domestic market prices from the international market, while cotton producers face lower prices and competition from cotton imports.