Spot rate remains unchanged amid lacklustre business

LAHORE: The market remained dull on Wednesday. The trading volume remained low. Cotton Analyst Naseem Usman told that rate of cotton in Punjab and Sindh is in between Rs 18000 to Rs 21,000 per maund.

The rate of New Kappas of Digree is in between Rs 10500-11000. New Kappas of Tando Bagho, Kadan and Badeen was available at Rs 10500-10600 and Kapaas of MP Sakro and Gharo were sold at Rs 10,500. The Kapaas of Kunri were sold at Rs 9500 to Rs 10,000.

It has been learnt that cotton have been cultivated over 3.6m acres across the Punjab, which is 90pc of the set target. Sources claimed that cotton sowing was still underway and added that target would be achieved easily due to availability of water.

Meanwhile, cotton traded only in the minus column except for July which had a few higher trades on the opening minute. That was all. More concerning, retail establishments had poor earnings announced and that didn’t help cotton.

Texas also received expected rain which was not a drought-buster but gave relief and hope to several areas. There were decent chances for more rain through tonight.

US equities were lower for most of cotton’s session, though by the close the DOW had a small gain, its 3rd consecutive up day. The NASDAQ had its 4th lower close in the last 5 sessions. July has 20 more sessions until its first notice day on June 24th.

The Jim Rogers long-only spec fund will start their 3 sessions of rolls, buying Dec/selling July, this Friday. Goldman Sachs, typically cotton’s largest long-only spec fund, start their 5 sessions of rolls two weeks from today on June 7th.

July traded in a 214-point range, 14068 to 14282, its most narrow range since April 8th. Today’s low of 14068 exactly filled the April 28th gap (14068-14075).

The Spot Rate remained unchanged at Rs 21000 per maund. The Polyester Fiber was available at Rs 303 per kg.

Copyright Business Recorder, 2022