07252016Mon
Last update: Mon, 25 Jul 2016 01am

Cotton and Textiles

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Trade activity improved on the cotton market on steady flow of buying orders from needy mills and spinners, dealers said on Saturday. The official spot rate failed to halt erosion, losing more Rs 100 to Rs 6,400, dealers said. Seed cotton prices in Sindh, were unchanged at Rs 3000 and Rs 3200 per 40 kg, similarly, in Punjab, prices showed no change in overnight levels at Rs 3000 and Rs 3300, respectively, they said. In ready business, around 15,000 bales of cotton changed hands between Rs 6550 and Rs 6800, they said.
Pakistan has missed the cotton sowing target by a wide margin of 21 percent in the current crop season. As a result, the country would miss the production target of 14.1 million bales by over 25 percent. The official sources at the Ministry of Textile Industry revealed to Business Recorder that cotton crop prospects for the current season (2016-17) are not very bright as sowing target has been missed by a big margin of 21 percent.
The country''s textile exports declined by 7.42 percent during the just concluded fiscal year as compared to subsequent fiscal year of 2014-15 after exports deteriorated to $12.455 billion from $13.453 billion, according to Pakistan Bureau of Statistics (PBS). As per PBS trade figure of last fiscal year, the textile sector experienced a massive decline in their export during the last fiscal year. Exports of raw cotton witnessed a 47 per cent decline during 2015-16 compared to the same period a year after its exports deteriorated to $76 million from $147 million.
Influenced by the global track, prices drifted lower further on the cotton market on Friday in the process of trading, dealers said. The official spot rate dropped further Rs 100 to Rs 6,500, dealers said. Similarly, falling trend was witnessed in the seed cotton in Sindh, as low type was unchanged at Rs 3000 and best type lost Rs 150 to Rs 3200 per 40 kg, in Punjab, inferior quality was inert at Rs 3000 and fine also shed Rs 150 to Rs 3300, respectively, they said.
ICE cotton futures settled lower on Friday, registering their biggest weekly fall in more than five weeks, on end of the week profit-taking and a stronger dollar. "Some of the Chicago grains like soybean were down, that was a little bit negative in a peripheral way," said Keith Brown, principal at cotton brokers Keith Brown and Co in Moultrie, Georgia.
The following were the fluctuations observed during the day:

Prices failed to maintain overnight gains on the cotton market on Thursday amid cautious buying by mills and spinners, dealers said. The official spot rate was down by Rs 50 to Rs 6,600, dealers said. Similarly, falling trend was witnessed in the seed cotton in Sindh, as low type shed Rs 400 to Rs 3000 and best type lost Rs 200 to Rs 3350 per 40 kg, in Punjab, rates also dropped modestly as inferior quality fell by Rs 400 to Rs 3000 and fine type shed Rs 150 to Rs 3450, respectively, they said.