KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Monday increased the spot rate by Rs 300 per maund and closed it at on Rs 13,800 per maund.
The local market remained stable and trading volume remained satisfactory.
Cotton Analyst Naseem Usman told Business Recorder that the rate of cotton in Sindh is in between Rs 13,700 to Rs 13,800 per maund and the rate of cotton in Punjab reached at Rs 13,800 to Rs 13,900 per maund.
The rate of new crop of Phutti in Sindh was in between Rs 5,500 to Rs 6,100 per 40 Kg. The rate of Phutti in Punjab is in between Rs 5,500 to Rs 6,100 per 40 Kg. The rate of Banola in Sindh is in between Rs 1,650 to Rs 1,750 per maund. The rate of Banola in Punjab is in between Rs 1,750 to Rs 1,800 per maund. The rate of cotton in Balochistan is Rs 13,600 to Rs 13,700 per maund. The rate of Phutti in Balochistan is Rs 6,000- 6,400 per maund.
800 bales of Sanghar, 800 bales of Shahdad Pur, 2,000 bales of Tando Adam were sold in between Rs 13,700 to Rs 13,800 per maund, 2,000 bales of Jahanian, 1,000 bales of Chichawatni, 200 bales of Haroonabad, 200 bales of Vehari, 200 bales of Khanewal, 200 bales of Mian Channu, 100 bales of Samundri were sold at Rs 14,000 per maund.
ICE cotton futures on Friday moved to a contract high on momentum from the US Department of Agriculture (USDA) cutting its production estimates, which put prices on track for their best week since early June.
Cotton contracts for December rose 1.23 cent, or 1.3%, to 94.55 cents per lb, by 1349 EDT (1749 GMT), extending its record-setting run to hit a new contract high of 94.70 earlier. Prices have risen about 3% so far this week. “Yesterday’s report, which had some surprising figures on the production side, was really the catalyst that the market needed, and today is a follow through from that,”
Bailey Thomen, cotton risk management associate at StoneX Group, said. The US Department of Agriculture (USDA) on Thursday lowered its outlook for US production by over half a million bales for the 2021/22 crop year, while world production estimates were also cut. “Buyers continue to be very active. Mills are still searching for cotton. China came back in as a really big buyer last week, which was a positive sign as their domestic auctions have been selling out, and it was important to see them buy US cotton,” Thomen said. Cotton futures were also buttressed by a sharp dip in the dollar and an up tick in Chicago wheat and soybeans.
“At the moment the market feels a lot tighter, with ready supplies seemingly exhausted and mills, along with the entire downstream sector, eager to get their hands on cotton and products,” Peter Egli, director of risk management at British merchant Plexus Cotton, said in a note. Egli added that a combination of supply chain disruptions and inventory build-ups is causing this panic-like demand surge, as shipments are often two to three months delayed, which forces mills and retailers to double-book in some cases and/or grab anything that is readily available.
The Spot Rate Committee of the Karachi Cotton Association increased the spot rate by Rs 300 per maund and closed it at on Rs 13,800 per maund. The Polyester Fiber was available at Rs 222 per Kg.
Copyright Business Recorder, 2021
Comments
Comments are closed.