KARACHI: The bullish trend was observed in the local cotton market on Friday after the release of the report of Pakistan Cotton Ginners Association which projects a decrease of drastic reduction of 8 lac cotton bales.
Cotton Analyst Naseem Usman told that according to the statistics released by Pakistan Cotton Ginners Association till September 15, 2020 10 lac 35 thousand bales were produced in the country which is 44.12% less as compared to the last year's cotton production of 18 lac 52 thousand bales. Naseem told that textile imports will further increase as a result of which country's economy will further deteriorate.
He also told that this year due to torrential rains, unsuitable weather conditions, corona lockdown and especially due to the substandard seeds cotton production was badly effected.
Market sources told that after the rains the supply and quality Phutti is improving. Sources also told that issue of availability of quality Phutti arises 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.
Naseem further 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.
At the closing bell on Thursday, front month cotton futures were 16 to 62 points lower. Cotton export bookings from the week ending September 10 were 519.6k RBs. That was 410% increase wk/wk and 611% above the same week last year, and the largest for any week since the week ending Jan 22 of 2015. China purchased 85% of the total with 440k. Cotton commitments to China are 37% of the total with 3.07m RBs and 7.63m RBs respectively.
Naseem Usman 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 1600 bales of Tando Adam were sold at Rs 8250 to Rs 8450, 600 bales of Nawabshah were sold at Rs 8350 to Rs 8400, 1000 bales of Khanpur were sold at Rs 8500 to Rs 8600, 1000 bales of Upper Sindh were sold at Rs 8600, 400 bales of Rajanpur were sold at Rs 8700 to Rs 9000, 200 bales of Marrot were sold at Rs 8950, 1200 bales of Haroonabad were sold at Rs 8900 to Rs 8950, 200 bales of Muhammadpur Dewan were sold at Rs 8900, 400 bales of Chichawatni were sold at Rs 8500 to Rs 8850, 800 bales of Dera Ghazi Khan were sold at Rs 8850, 600 bales of Vehari were sold at Rs 8500 to Rs 8600, 600 bales of Layyah were sold at Rs 8450 to Rs 8500 and 200 bales of Mian Channu were sold at Rs 8500.
He told that rate of cotton in Sindh was in between Rs 8300 to Rs 8600. 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 4100 per 40 kg. The rate of Phutti in Punjab is in between Rs 3500 to Rs 4500 per 40 kg.
The rate of Banola in Sindh was in between Rs 1650 to Rs 1750 while the price of Banola in Punjab was in between Rs 1750 to Rs 1800. The rate of cotton in Balochistan is in between Rs 8500 to Rs 8600 while the rate of Phutti is in between Rs 4400 to Rs 4800. The Spot Rate remained unchanged at Rs 8700 per maund. The polyester fiber was available at Rs 153 per kg.
Copyright Business Recorder, 2020
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