2010-11-10

Cotton price is nearing Rs 1,000 per 40 kilogramme in the country as deals in Mirpurkhas Sindh changed hands at Rs 9,650 per maund Friday.

This is inevitable that the lint prices will touch Rs 1,000 level in the country on more than one count, lint analyst, Shakeel Ahmad said.

Lint production in the country has shown a decline by 17.55 percent according to Pakistan Cotton Ginners Association fortnight arrival report on November 1, 2010.

There was a shortfall of 1.3 million bales in fifteen days arrival of lint by November 1, 2010 as compared to the same period last crop season, Ahmad maintained. China's buying is on full swing due to fall in 2011 cotton output, New York futures are still showing an upward trend and shortfall in crop year 2010-11 in Pakistan is the major contributors to rise in price, he added.

According to US Department of Agriculture, prices have soared 79 percent in New York this year while in Pakistan prices are up by Rs 1,000 per maund within fifteen days, he asserted.

Cold spell in China and hailstorms in Texas damaged crops. China, the world's biggest buyer is forcing mills to import more from major producing countries as the country is already facing a 14-year low production.

China's imports were forecast to rise to 13 million bales this year, from 10.9 million a year earlier. The US is the world's largest exporter that is also running of stocks ?C?C as it already sold its 98 percent crop 2010. Around 2 million bales were destroyed in the recent floods in Punjab and Sindh while millions of tonnes of seed were washed away, he said.

The thunderstorms near the Indonesian island of Sumatra might develop into a tropical cyclone and damage cotton crops in India ?? the world's second-biggest grower, according to weather forecaster MDA Information Systems Inc.

In the domestic market, price soared by Rs 400 per maund in a single trading session Friday to stay firm at Rs 8,900 per maund.

The continuous rising trend in New York future contracts, which recorded a high $1.51 per pound, and increase in export price by Indian traders by 45-50 cents per pound to $1.45 per pound swelled the price in domestic market, Ahmad said.

In international market New York cotton December futures closed at $1.41 per pound, March contracts closed at $136 per pound and Cotlook A Index settled at $1.55 per pound Friday. He said the textile and yarn sector would face a huge financial burden, importing cotton from US, Brazil and other sources.

 

source: dailytimes