KARACHI: The Karachi Cotton Exchange (KCE) increased the spot rate by Rs50 per maund (37.324 kilograms) on Monday to Rs5,950 per maund after prices managed to inch up at the open markets in the country, said dealer.
“The KCE increased cotton spot rate after the commodity price managed to cross Rs6,100 per maund at the open markets,” said a broker at the KCE. “Decline in cotton arrivals in the markets helped ginners increased the commodity price at the open markets.”
Earlier, the KCE kept its spot rate unchanged at Rs5,900 per maund for seven consecutive working days.
Meanwhile, Pakistan Cotton Ginners’ Association (PCGA) reported a shortfall of over six percent (or 807,579 bales) to 12.02 million bales’ (of 155 kilograms each) arrival at the markets for the period from July 1, 2012 to January 15, 2013 against 12.82 million bales arrived during the same period last year.
Around 9,400 bales were traded at Rs5,400 to Rs6,125 per maund against 13,600 bales traded on Saturday at Rs5,600 to Rs6,100 per maund, according to the KCE.
Upper Sindh (BCI) and Rahim Yar Khan witnessed highest trade of 3,000 bales each at Rs6,050 to Rs6,125 per maund. Khanpur traded 2,000 at Rs6,100 to Rs6,125 per maund, according to the KCE.
Sadiqabad traded 600 bales at Rs6,100 per maund; Liaqutpur traded 400 bales at Rs6,050 per maund; and Chichawatni and Haroonabad traded 200 bales each at Rs5,400 to Rs5,750 per maund, according to the KCE.
The broker said that although the price of the commodity has increased at the open markets, trade turnover of the commodity remained low due to electricity and gas crises at textile factories in Punjab.
In the meantime, China cotton index dropped by one point to 19,286 points, according to the KCE.