KARACHI: Business remained bullish on local cotton market on Wednesday. Market sources told that after the rains the supply of Phutti is improving. Sources also told that issue of availability of quality Phutti rises in the market due to which buyers were not taking interest. The availability of quality is difficult before October.
The millers have 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 European Union and America boycotted products of Chinese province Sinkiang as a response China hints a decline in American products as a result of which bearish trend was witnessed in New York Cotton. China is accused of involving in forced labour.
Meanwhile ICE cotton futures rose as much as 3.2% to a more than 6-month high on Monday as Hurricane Sally raised concerns of crop damage, while a lower output estimate from a federal report further supported the natural fibre.
Cotton contracts for December settled up 1.81 cents, or 2.8%, at 66.62 cents per lb, after hitting the highest level since Feb. 25 at 66.87 cents per lb.
"The market is being driven higher by a positive carryover from Friday's report, USDA cut the crop dramatically," said Keith Brown, principal at cotton brokers Keith Brown and Co in Georgia. While Cotton futures closed the Tuesday session down 7 to 42 points in the front months.
A former chairman of the Standing Committee on Agriculture of the FPCCI and Businessmen Panel Secretary-General (Federal) Chaudhry Ahmad Jawad has asked the government to offer special tariff concessions and give policy on the import of quality seeds suitable to our soil conditions until the PARC and the NARC becomes self-sufficient in the production of seeds.
Apart from this, he demanded of the government to direct the ZTBL to start providing finances to agro-based industries on special rates in order to give a push to value addition as well as agricultural exports of the country. He urged the ZTBL to initiate lending on value addition for the revival of the agro-industry.
Naseem further told that according to media reports like last year cotton zone is under severe attack of White Fly. Agriculture experts were of the view that if the situation remains like this then it looks difficult that cotton production target will be achieved this year.
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.
He also told that 1200 bales of Tando Adam were sold at Rs 8150 to Rs 8200, 600 bales of Sanghar were sold at Rs 8075, 1000 bales of Hyderabad were sold at Rs 8050, 400 bales of Kotri were sold at Rs 8125, 200 bales of Jam Sahib were sold at Rs 8300, 200 bales of Karondi, 200 bales of Saleh Put were sold at Rs 8500, 200 bales of Dera Ghazi Khan were sold at Rs 8850, 400 bales of Dharanwala were sold at Rs 8850, 600 bales of Faqeerwali were sold at Rs 8800 to Rs 8850, 900 bales of Burewala were sold at Rs 8650 to Rs 8850, 1400 bales of Chichawatni were sold at Rs 8750 to Rs 8800, 200 bales of Khairpur Tamiwali were sold at Rs 8700, 400 bales of Mian Channu were sold at Rs 8700, 400 bales of Fort Abbas were sold at Rs 8100, 200 bales of Alipur were sold at Rs 8625 and 800 bales of Pir Mahal were sold at Rs 8000.
He also told that rate of cotton in Sindh was in between Rs 8200 to Rs 8500.The rate of cotton in Punjab is in between Rs 8700 to Rs 9000. He also told that Phutti of Sindh was sold in between Rs 3400 to Rs 4300 per 40 kg. The rate of Phutti in Punjab is in between Rs 3500 to Rs 4400 per 40 kg.
The rate of Banola in Sindh was in between Rs 1700 to Rs 1800 while the price of Banola in Punjab was in between Rs 1750 to Rs 1850. The rate of cotton in Sindh is in between Rs 8400 to Rs 8500 while the rate of Phutti is in between Rs 4100 to Rs 4900.
The Spot Rate remained unchanged on Wednesday at Rs 8600 per maund. The polyester fiber was available at Rs 153 per kg.
Copyright Business Recorder, 2020