LAHORE: Dullness persists in local cotton market on Saturday. Trading volume remained very low. The Spot Rate remained unchanged.
Cotton Analyst Nasseem Usman while talking to Business Recorder said that price of Punjab’s Phutti attracted per 40 kilograms prices from Rs 7000 to Rs 9000.
Cotton of Sindh was traded from Rs 18000 to Rs 20,000 per maund, Punjab’s cotton was traded from Rs 18000 to Rs 20,000 per maund. He also told that 740 bales of Khan Pur were sold at Rs 21000 per maund.
ICE cotton futures slipped more than 1% on Friday, weighed down by a stronger dollar and risk-off sentiment across equities as the Russia-Ukraine crisis intensified.
The most active May cotton contract on ICE futures fell 1.30 cent, or 1.1%, to 118.50 cents per lb, at 11:07 a.m. ET.
“The stock markets are down and the dollar is up, which is hurting cotton. However there is still demand going on out there,” said Jim Nunn, owner of Tennessee-based cotton brokerage Nunn Cotton.
The dollar index rose 0.9% against its rivals. A stronger greenback makes cotton more expensive for overseas buyers. USD/
Wall Street’s main indexes lost more than 1% as concerns over the intensifying war in Ukraine overshadowed data that showed an acceleration in jobs growth last month.
The US Department of Agriculture’s weekly export sales report on Thursday showed net sales of 348,600 running bales of cotton for 2021/2022, up 41% from the previous week and 51% from the prior 4-week average.
Meanwhile, Peter Egli, director of risk management at British merchant Plexus Cotton, in a note dated Thursday said sales were great but the pace of shipments is what will matter the most.
If the US manages to ship that much cotton in such a short amount of time and if delayed shipments from various other origins also make it in greater numbers, then the world may not be short of cotton, added Egli.
Textile and leather goods makers in Istanbul’s garment district are feeling the pinch of Russia’s invasion of Ukraine. Customers in Moscow and Kyiv have cancelled $200 million in orders in the past week, industry officials say.
The loss of trade adds to strains, with officials estimating that more than $1 billion is directly at risk to the textile industry alone if the conflict in Ukraine continues.
Russia and Ukraine accounted for more than $1 billion in Turkish exports of leather shoes, jackets and finished and unfinished clothing last year, and nearly three times that much in the unofficial “suitcase trade” centered in Istanbul, officials say.
Falling export income could add to the Turkish current account deficit, which is widening following Russia’s invasion of Ukraine last week due to soaring energy prices and an expected hit to tourism this year. The Spot Rate remained unchanged at Rs 20,000 per maund. Polyester Fiber was available at Rs 268 per kg.
Copyright Business Recorder, 2022
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