The Karachi Cotton Association (KCA) spot
rate jumped Rs500 in a single day to peak at Rs10,500 per maund (37.324
kg) from Monday’s Rs10,000. Cotton prices will continue to rally and cross Rs12,500 in the near future, added Chand.
Pakistani traders had signed contracts with Indian dealers at around 70
cents per pound while prices in the global market had surged to over
120 cents, prompting them to consider cancelling the deals. The Pakistani textile industry had
approached Indian exporters for import of 1.5
million bales to bridge the demand-supply gap caused by the damage to
the cotton crop in recent floods. Moreover, high demand from China, the
world’s biggest buyer and consumer, due to damage to its crop also
pushed up prices.Cotton futures advanced to record in New York after the US government
cut its estimate of global production and cited a shortage in China.
The March-delivery contract gained as much as 3.3 per cent to $1.52 a
pound on ICE Futures in New York. Indian sellers have the opportunity to sell to Chinese
companies that are willing to pay much higher prices as demand is
higher.
Date:11/11/2010
Source:Al Alam AL Youm Newspaper