January 25, 2013
KARACHI: The Karachi Cotton Exchange (KCE) increased its cotton spot rate by another Rs50 per maund (37.324 kilograms) on Thursday to Rs6,050 per maund amid higher demand for high quality cotton at the open markets, said a dealer.
“Spinning mill-owners are demanding high quality cotton to deliver a better quality yarn to their strong buyers in China. The situation kept commodity price hovering higher at the open markets across the country and convinced the KCE to increase its spot rate, as well,” said Girdhari Lal, broker at the KCE.
This was the second consecutive increase in two days by the exchange, while it had improved its sport rate by a total of Rs150 per maund in the last four days. “It was July 2012 last time when the KCE spot rate was around Rs6,050 per maund,” said broker.
He said that strong cotton yarn demand by China has helped ginners sell the commodity above Rs6,000 per maund in this fiscal year (July 2012 to June 2013). Last year, they were selling the better quality commodity at and around Rs4,000 per maund, he said.
Meanwhile, around 17,400 bales were traded at Rs4,600 to Rs6,200 per maund against 18,000 bales traded at Rs5,500 to Rs6,200 per maund a day ago, according to the KCE.
Rahim Yar Khan remained the turnover leader with the trading of 7,000 bales at Rs6,200 per maund followed by Mianwali, which traded 2,000 bales at Rs6,100 per maund, according to the KCE.
Haroonabad traded 1,100 bales at Rs5,775 to Rs6,100 per maund. Khanewal and Daranwala traded 800 bales each at Rs5,800 to Rs6,100 per maund. Other markets of the country traded minimum 200 bales to maximum 500 bales each at Rs4,600 to Rs6,200 per maund.
In the meantime, March futures contract at New York cotton market increased by 0.55 cents per pound to 80.48 cents, while May futures contract surged by 0.59 cents per pound to 80.67 cents, according to the KCE.