Raw cotton remained steady on Monday, despite tight supply in the local market, dealers said. “Ginned cotton prices could increase in the upcoming days as there are more buyers than sellers who ask for higher prices in the domestic market,” said Naseem Usman, chairman of the Karachi Cotton Brokers Forum.
“The demand for the commodity has substantially gained in the world and cotton prices are rising almost on daily basis at the International Commodity Exchange (ICE) due to short supply from the main exporting countries, including China, Australia and Pakistan following floods and heavy rains.” Meanwhile, Shakeel Ahmad, a leading cotton trader at the Karachi Cotton Exchange (KCE), said that prolonged gas and power outages hurt production of local mills, delaying their export orders. Moreover, they had already been facing a shortfall of four million bales for the current season 2010/11.
Spot rates of the Karachi Cotton Association (KCA) remained unchanged at Rs10,800 per maund and Rs11,574 per 40kg for average-quality lint. Because of soaring prices in the wake of short supply in the country, cotton sales declined to 6,800 bales of raw cotton (170kg each), including 200 bales from Tando Adam at Rs10,400 per maund, 400 bales each from Fazilpur, Noorpur, Khanewal, Bahawalpur, Layyah, Mianwali and Faqirwali; 600 bales from Haroonabad; 800 bales from Mian Channu and Vehari; 1,000 bales from Sadiqabad; and 200 bales each from Kassowal, Chichawatni and Yazman Mandi, varying in between Rs10,400 and Rs11,200 per maund.