Cotton prices hit record high in Pakistan
Friday, 5 February 2010
KARACHI, Feb 04 (Commodity Online): Cotton prices in Pakistan hit a new record high Wednesday when the physical business took place at Pak Rs 5,050 per maund.
Analysts said due to shortfall of around 2.5 million bales, Pakistan's textile and spinning sectors are eager to consolidate their long positions in order to minimize the export price, which is rising on increasing dollar.
The spot rate of the Karachi Cotton Association (KCA) settled at Pak Rs 3,200 on the January 1, 2009 and on December 31, last trading day of 2009, it was Pak Rs 4,550 per maund.
Deals on three-month delivery period matured above physical prices in Sindh while fine lint remained in focus, they said.
According to Pakistan Cotton Ginners Association arrival of lint till February 1, 2010, ginneries received 12,513,230 bales, out of which, textile sector bought 10,907,982 bales while private sector commercial exporters purchased 794,348 bales during the period.
Cotton exports is likely to touch more than 1 million bales by the end of February 2010, as multinational companies are also active in this trade.
International price index also moved upward despite financial depression and worldwide short crop in 2009.
In the international market the lint price was 58.11 cents per pound and on December 2009 the price was quoted at 75.43 cents per pound.
Analysts said due to shortfall of around 2.5 million bales, Pakistan's textile and spinning sectors are eager to consolidate their long positions in order to minimize the export price, which is rising on increasing dollar.
The spot rate of the Karachi Cotton Association (KCA) settled at Pak Rs 3,200 on the January 1, 2009 and on December 31, last trading day of 2009, it was Pak Rs 4,550 per maund.
Deals on three-month delivery period matured above physical prices in Sindh while fine lint remained in focus, they said.
According to Pakistan Cotton Ginners Association arrival of lint till February 1, 2010, ginneries received 12,513,230 bales, out of which, textile sector bought 10,907,982 bales while private sector commercial exporters purchased 794,348 bales during the period.
Cotton exports is likely to touch more than 1 million bales by the end of February 2010, as multinational companies are also active in this trade.
International price index also moved upward despite financial depression and worldwide short crop in 2009.
In the international market the lint price was 58.11 cents per pound and on December 2009 the price was quoted at 75.43 cents per pound.