KARACHI: The Karachi Cotton Exchange (KCE) increased its cotton spot rate by Rs100 per maund (37.324 kilogram) to Rs6,600 per maund on Thursday in line with surging commodity price in local and international markets, a dealer said.
“The KCE increased the spot rate after the commodity price shot to Rs7,000 per maund on cash in the local markets,” Lal Kumar, broker at KCE, said. “Similarly, the New York cotton market also maintained upward trading.”
He said that spinning mill owners were purchasing cotton heavily on the global forecast that the commodity’s sowing will be less in the next season worldwide.
“Price of low quality cotton has increased upto Rs5,200 per maund from Rs4,800 a few days ago,” he said. “Exporters are the major buyers of low grade commodity these days.”
Traders exchanged over 21,000 bales at Rs5,900 to Rs7,200 per maund in the local markets during the day. “Mian Channu was the station that traded 400 bales at Rs7,200 per maund on credit,” KCE said.
Yazman Mandi witnessed the highest trade of 6,400 bales at Rs6,600 to Rs6,800 per maund, followed by Khanpur which traded 3,000 bales at Rs7,000 per maund, KCE said.
Bahawalpur traded 1,800 bales at Rs6,700 to Rs6,800 per maund, Burewala traded 1,500 bales at Rs6,375 per maund, Rahim Yar Khan traded 1,400 bales at Rs7,000 per maund, Haroonabad traded 1,300 bales at Rs6,390 to Rs7,000 per maund, Mianwali traded 1,200 bales at Rs6,900 per maund, Mirpur Khan traded 1,000 bales at Rs5,900, while other markets traded a minimum of 194 bales to a maximum of 600 bales for Rs7,200 per maund, it added.
At the New York cotton market, March futures contract surged by 0.26 cents per pound to 86.23 cents, while May futures contract increased by 0.26 cents per pound to 87.24 cents, KCE reported.
Taqi Abbas, broker at KCE, said that the price of the commodity may shoot upto Rs7,200 per maund on cash if the New York cotton market maintains an upward trend. “International trend suggests that the New York market may hit 90 cents per pound in short-to-medium run,” he said.