The Karachi Cotton Association (KCA) official spot rate was raised by Rs 100 to Rs 6,500, they said. In the ready business nearly 7,000 bales of cotton changed between Rs 6350-6800, they said. The seedcotton in Sindh was higher at Rs 2700-2800 and rates in Punjab were also up at Rs 2700-2950, they added.
Market sources said that in line with the international track the local rates took a boost and rising gradually, which is in fact a support for the growers who were in crisis due to high cost of production but they are not able to gain profit because of fall in prices after projection of bumper crop.
They attributed the fresh rise to damage to the standing crop after recent rains in some parts of Sindh. Some brokers said that there are cloudy weather in both Sindh and Punjab, so it is most likely that prices may not fluctuate sharply due to expectations for good crop this year. In the meantime, many spinners were inquiring about the rates from the foreign countries to import cotton, if prices are matching with their psychological level, they will make deals, some experts said.
On Thursday the NY cotton futures ended lower due to investor sales sparked by global macroeconomic worries, but talk of crop problems in Pakistan and possibly top consumer China pared market losses, brokers said. Jitters over Europe's debt crisis and a raft of weak US economic data triggered a rout in global equities and spurred investors to the perceived safety of gold and US government bonds.
The key December cotton contract on ICE Futures US fell 0.87 cent to finish at $1.0695 per lb, moving from $1.0382 to $1.08. Trading volume totalled more than 14,000 lots, some 3.4 percent above the 30-day norm, Reuters data showed. Total volume traded on Wednesday hit 19,198 lots, up from the Tuesday level of 7,113 lots, which was the lowest level of business since May 23, ICE Futures US data showed.