Omar1984
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KARACHI: The country is inching to touch the highest international price level of cotton following China, leaving behind the USA and India Friday.
Pakistan export price closes at 87.22 cents per pound, leading China at 99.52 cents per pound followed by New York Cotton at 82.20 cents per pound and India with closing at 82 cents per pound in international market, Fazal Ahmad Khilji, an expert on cotton at Drachenberg in Lubbock, Texas said.
He said cotton physical price in Pakistan continued rising and reached its highest ever level at around Rs 6,002 per 40 kg besides spot arte at Karachi Cotton Association (KCA) also made highest record of Rs 5,600 per maund.
Khilji said due to fine quality, the Pakistans lint is fetching higher price in international as well as in domestic market.
Shrinking stocks and quality issue is giving impetus to the price to go up, while the mills and spinners remained bound to buy produce on the asking price by the sellers, he added.
He said, The international price index also moved upward despite financial depression and worldwide short crop in 2009, when New York Cotton future market May closed at 81.17 cents per pound with a gain of 201 points last night.
The Cotlook A Index was declared settled at 84.05 cents per pound with a decrease of 60 points. This leads a correction in the Index price, he added.
The spot rate of KCA was declared settled at Rs 3,200 on the January 1, 2009 and on December 31, last trading day of 2009, it was Rs 4,550 per maund, he added.
The cotton export from the country witnessed an historic level when it crosses a figure of 193 percent, the country exported around 865,000 cotton bales till February 1, 2010 to Bangladesh, India, Central Asian Countries and Indonesia, according to Federal Bureau of Statistics.
Cotton traders have also contracted for the export of more than 0.30 million bales of cotton by the end of March 2010, a member at KCA, Shakeel Ahmad said.
He said the export of cotton was likely to touch one million bales end April 2010, as multinational companies were also active in this trade.
He said trading at KCA remained on high note and several deals were matured above spot rate. He said around 1,000 bales of Daharki changed hands at Rs 5,650 per maund, 400 bales of Mehrabpur at Rs 5,500 per maund and 500 bales of Shahdapur were traded at Rs 5,500 per maund.
The country is already facing a shortfall of 3 million bales in crop season 2009-10 and textile sector has to spend around Rs 76 billion for the import of cotton, Ahmad said.
