Pakistan: Raw cotton rose by Rs1,000 to strike a record high of Rs14,000 per maund on Thursday after the Pakistan Cotton Ginners Association (PCGA) showed a significant fall in the country’s crop output in its fortnightly report and sharp rise in commodity prices in the international market, dealers said.
Rajanpur ginners sold 400 bales of cotton at the highest price of Rs14,000 per maund on two-month credit, surpassing the previous record high of Rs13,000 per maund on February 4. “A fall of around 1.15 million bales in the PCGA’s report and rise in the international market have pushed domestic cotton up and made another record high,” said Shakeel Ahmed, a cotton analyst.
At the International Commodity Exchange (ICE), raw cotton for March and May contracts skyrocketed by 8.58 cents and 7 cents to $2.04 and $2.00 per pound due to rising demand for ginned cotton from importing countries. Spot rates of the Karachi Cotton Association (KCA) remained unchanged at Rs12,000 per maund and Rs12,860 per 40kg for average-quality lint.
A small number of deals of seedcotton (Phutti) were made in the range of Rs4,500 and Rs5,800 per 40kg in Punjab and Sindh. Moreover, the country’s cotton sales stood at 2,400 bales of raw cotton (170kg each), including 400 bales each from Rajanpur, Kabirwala, Mongi Bangla, Garh Mahraja, Rohri and Salehpat.