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Cotton prices rise following global market trends
Jan '11
The cotton market has been marked with optimism as the prices are following the trend in the global market. The Karachi Cotton Association (KCA) spot rate has increased aggressively by Rs 300 to reach Rs 9500. Prices of seed cotton have been ranging between Rs 3,900 to Rs 4,500 in Sindh and Punjab provinces.

Cotton market witnessed a positive development owing to the continuous rise in the New York cotton futures. Meanwhile, the mills were hesitant in purchasing cotton owing to the rising cotton prices. The hike in prices is largely because of the shortage of cotton and the damage that was caused to the cotton crop due to floods in Pakistan.

However, there has been no slowdown in the speculative increase in the New York cotton futures, which emerged as one of the major reasons behind the price rise in the domestic market. Under the prevailing situation it is quite difficult to assess the future price outlook owing to the vast disparity that exists between demand and supply. Currently, it sounds quite challenging to quote lower rates. The prices are, very soon, expected to touch the unprecedented level of Rs 10,000.

Fibre2fashion News Desk - India

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