KARACHI: The local cotton market recorded active trading on Tuesday, while spot rate increased by Rs100 per maund, said a dealer.
The spot rate increased to Rs5,900 per maund (37.324kg) and Rs6,323 per 40kg, while ex-Karachi rate improved to Rs6,030 per maund and Rs6,453 per 40kg after addition of Rs130 as upcountry expenses, he said.
An analyst said that the market remained tight, as spinners showed demand, which increased rates for the individual deals and the spot rate. “The international market is also tight, which had its impact over the local market. Price of cottonseed is Rs3,000 per 40kg, which shows that new lint variety will be available on higher price,” he said.
Bumper cotton crop during FY12 has seen cotton prices being restricted to below Rs6,000 per maund in the domestic market. During the fourth quarter of FY12, cotton prices have averaged at Rs5,807 per maund against Rs6,027 in the first half of FY12.
Internationally, the prices have come down to 83.05 cents per pound from hitting a year’s high of 122.75 cents in the first half FY12.
New York cotton market recorded an increase on all futures on Monday, while China cotton index recorded decline of a few points. July futures at New York cotton market increased by three cents to 82.98 cents per pound and October futures improved by 0.99 cents to 71.87 cents per pound.
Karachi cotton market recorded active transaction of around 4,700 bales on Tuesday in between 4,400 per maund to 6,600 per maund.
Tandliwali’s 200 low quality bales were traded for Rs4,400 per maund, 400 bales of Depalpur at Rs5,550, 2,800 bales of Sadiqabad at Rs6,200, 300 bales of Rahim Yar Khan at Rs6,200, 400 bales of Mian Channu at Rs6,500 per maund on credit and 600 bales of Layyah were traded at Rs6,600 per maund on credit.