KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Wednesday has decreased the spot rate by Rs 150 per maund and closed it at Rs 8650 per maund.
Market sources told that local cotton market remained bearish. Sources said that trading activity is improving after the rains as the supply of Phutti is improving. The millers started imported cotton from abroad because of the high prices of the local cotton. Picking was also affected due to rains.
Cotton Analyst Naseem Usman told that ICE cotton futures fell to their lowest level in nearly three weeks on Tuesday on a stronger dollar and concerns over trade relations between the natural fibre's top exporter, the United States, and the top consumer, China.
Cotton contracts for December settled down 0.97 cent, or 1.5%, at 64.02 cents per lb, having earlier hit their lowest since Aug. 20 at 63.60 cents per lb.
"People are once again worried about the trade with China and the dollar is extremely strong which is bearish (for cotton)," said Sid Love, commodity trading adviser at Kansas-based Sid Love Consulting.
Ratcheting up tensions between the world's top economies, President Donald Trump on Monday raised the idea of separating the US and Chinese economies, also known as decoupling.
While the administration of US President Donald Trump is weighing a ban on some or all products made with cotton from the Xinjiang region of China over alleged human rights violations, the New York Times reported late on Monday.
Director Multan Cotton Research Institute Dr Zahid Mahmood in his message to the farmers said that next 40 days are very important for the quality and good production of the cotton. He said that there is a threat of attack of insects on the cotton crop.
Naseem also told that as per media reports Sindh farmers have lost nearly half-a-million bales of cotton ever since the monsoon season began and pest attacks intensified following the humid weather.
"Growers in Mirpurkhas, Sanghar, Umerkot, Khipro etc have lost nearly 400,000-500,000 bales of cotton in the ongoing month, and whatever crop has survived the downpour is of low quality and will sell at below market rates," said Pakistan Cotton Ginners Association's former chairman Dr Jessu Mal Leemani.
"Rains have caused enormous losses to farmers in these districts as there is no concept of crop insurance and the government has yet not announced any financial help for them," he deplored.
He also told that 2000 bales of Tando Adam were sold in between Rs 8300 to Rs 8500, 200 bales of Shahpur Chakkar were sold at Rs 8100, 1200 bales of Sanghar were sold in between Rs 8100 to Rs 8300, 1000 bales of Shahdadpur were sold in between Rs 8100 to Rs 8300, 800 bales of Hyderabad were sold at Rs 8100 to Rs 8400, 600 bales of Chichawatni were sold in between Rs 8800 to Rs 8850, 200 bales of Burewala, 200 bales of Mian Channu were sold at Rs 8850, 200 bales of Bahawalpur, 200 bales of Lodhran were sold at Rs 8800, 600 bales of Haroonabad, 600 bales of Vehari were sold at Rs 8700.
He also told that rate of cotton in Sindh was in between Rs 7900 to Rs 8200.The rate of cotton in Punjab is in between Rs 8400 to Rs 8600. He also told that Phutti of Sindh was sold in between Rs 3200 to Rs 3800 per 40 kg. The rate of Phutti in Punjab is in between Rs 3600 to Rs 4000 per 40 kg.
The rate of Banola in Sindh was in between Rs 1600 to Rs 1650 while the price of Banola in Punjab was in between Rs 1700 to Rs 1800.
The Spot Rate Committee of the Karachi Cotton Association on Wednesday has decreased the spot rate by Rs 150 per maund and closed it at Rs 8650 per maund. The polyester fiber was available at Rs 153 per kg.
Copyright Business Recorder, 2020