KARACHI: Trade turnover of cotton improved to 5,400 bales amid surge in price to Rs6,200 per maund (37.324 kilograms) at the open markets across the country on Tuesday after demand for quality cotton yarn from China remained on the higher side, said a dealer.
“The trade turnover and price of cotton increased at the open markets after demand for quality cotton yarn from China was seen on the higher side,” said Girdhari Lal, a broker at the Karachi Cotton Exchange (KCE).
The spinning mill-owners are buying higher quality cotton for their buyers in China. The situation allowed ginners to get a higher price for the commodity, he said.
Around 5,400 bales were traded at Rs5,750 to Rs6,200 per maund against total of 200 bales traded at Rs5,400 per maund a day ago, according to the KCE.
The KCE, however, kept its cotton spot rate unchanged for the fourth consecutive day at Rs6,050 per maund.
Upper Sindh (BCI) witnessed highest trade of 1,200 bales at Rs6,100 per maund followed by Khairpur, which exchanged 1,000 bales at Rs6,100 per maund, according to the KCE.
Burewala, Arifwala, Multan, Mianwali, Khanewal and Rahim Yar Khan traded 400 bales each at Rs5,750 to Rs6,200 per maund. Qaboola, Taunsa Sharif, Bahawalpur and Haroonabad traded 200 bales each at Rs5,750 to Rs5,925 per maund, it added.
The broker said that the quality cotton would remain in demand this year and would also help ginners get higher price. “The price of good quality cotton may further surge to Rs6,400 per maund in the short- to medium-term.”
Meanwhile, March futures contract at New York cotton market improved by 0.53 cents per pound to 81.05 cents, while May futures contract also increased by 0.53 cents per pound to 81.01 cents. China cotton index dropped by five points to 19,267 points.