Pakistan: Cotton prices surge to all-time high
Cotton prices surged to another record high on Wednesday owing to rising international prices and supply constraints following India’s decision to halt exports.
Egytex News Desk
Source: www.yarnsandfibers.com
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.
Source: www.yarnsandfibers.com
From the Egytex news archive, first published on 11 November 2010. Figures and names are as reported at the time.
