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Related Keywords: all grades on bargaining prices, Buyers made a month forward deals, domestic price, growing demand of cloth and yarn, KCA, moderate trading activity, spot rate gained strength, strong physical price, witnessed at cotton market

Moderate trading activity was witnessed at the cotton market with strong physical price. Buyers made a month forward deals for all grades on bargaining prices at around Rs 5,125 per maund during the trading session,said floor brokers.

The Karachi Cotton Association (KCA) spot rate gained strength and closed at Rs 5,600 per maund.

According to senior trader, Ghulam Rabbani, leading buyers were eager for fine grades and even paying slightly higher price on the back of growing demand of cloth and yarn and also as import was costly comparing to domestic price.

Related Keywords: Chinese cotton industry, cotton import quota, cotton yarn, domestic cotton production, domestic price, domestic textile enterprises, ginned cotton, NDRC, subsidize farmers, WTO

China’s domestic cotton output this year is projected to reach 6.5 million tonnes,, down by 500,000 tonnes from the previous year, while demand will be around 8.5 million tonnes, resulting in a supply gap of 2 million tonnes.

To control import of cotton yarn, China has decided not to increase its cotton import quota next year beyond the 894,000-tonne quota it promised when joining the World Trade Organization and also to guide domestic textile enterprises to use more homegrown cotton.