Commenting on the rise in the rates, some experts said that surge in the NY cotton futures boosted prices in the local market, in the meantime, leading exporters were conspicuous by their absence. Sharing the same views, cotton analyst, Naseem Usman said financial crisis kept the buyers on the sidelines but some of them did little buying to meet the urgent needs.
Reports showing that the US cotton ginners have processed 12.87 million 480-lb bales of cotton this season, the US Agriculture Department (USDA) said on Tuesday, indicating that 2013-14 production in the world's top exporter will be less than previously forecast.
Reuters adds: Cotton futures surged to a two-year high in a late-day buying spree on Tuesday after a US government report signalled lower-than-forecast output in the United States, the world's top exporter. The benchmark May cotton contract on ICE Futures US soared as high as 94.63 cents a lb in heavy trade before closing the day up 3.48 cents, or 3.8 percent, at 94.11 cents a lb. The following deals were reported: 200 bales of cotton from Akri at Rs 6650 (Conditional), same figure from Ghotki at Rs 6750 (Conditional), 100 bales from Burewala at Rs 6225, 200 bales from Yazman Mandi at Rs 6400 and 300 bales from Faqirwali at Rs 6440, they said.