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KARACHI: The local cotton market remained stable on Wednesday. Market sources told that mills were involved in cautious buying due to which the trading volume remained low. The rate of Indian cotton was increased by Rs 400.

Cotton Analyst Naseem Usman told that according to the data released by USDA till November which shows that there is no chance of bullish trend in the market in near future.

Cotton futures eased on Tuesday as falling equities and crude oil prices due to rising coronavirus cases stoked demand worries for the natural fiber, while a softer dollar limited some losses.

The cotton contract for March fell 0.25 cent, or 0.4%, to 71.33 cents per lb by 12:20 p.m. ET (1720 GMT), having jumped as much as 2.3% in the last session on hopes for a coronavirus vaccine.

“Crude oil is down, stock market is down so the financial markets are definitely not helping out. The virus is having an effect, hurting demand for cotton - less people are buying cloths,” said Jack Scoville, vice president at Chicago-based Price Futures Group.

Rising virus infections in the United States and around the globe have pushed oil prices and Wall Street’s main indexes lower, with the S&P 500 and the Dow retreating from record closing highs hit a day earlier.

Falling oil prices make synthetic fibers cheaper, making cotton, a competing natural fiber, less appealing.

The cotton production in the country witnessed an alarming decline of 2.8 million bales says a report release by Pakistan Cotton Ginners Association. The report says that more than 4 million bales were produced in the country which is 41.47% less as compared to more than 6.8 million bales produced till November 15 last year.

According to the statistics released by Pakistan Cotton Ginners Association till November 15 local textile mills bought more than 3.1 million bales which is around 40.56% less as compared to the last year buying of more than 5.2 million bales during this period. The ginners had the stock of 800,000 bales which is 43.20% less as compared the last year stock of more than 1.5 million bales.

Chairman Karachi Cotton Brokers Forum Naseem Usman while commenting on the report said that as per the statistics of the report this year 5.5 million bales will be produced in the country adding that around 7 million bales will have to be imported to fulfil the demands of the local industry.

Chairman Pakistan Cotton Ginners Association Dr Jasomal Limani told Naseem Usman told that major reasons, behind low production of cotton this year is non availability of good quality seeds, substandard pesticides and to some extent climate change.

Jasomal also said that he talked to federal minister for Industries Hammad Azhar and federal minister for National Food Security Syed Fakhar Imam regarding alarming decline in the cotton production. Both the ministers assured that they will play their role regarding giving incentives to the farmers. They also assured that import duty on pesticides will be reduced.

Dr Jasomal stressed on the need of introducing efficient technology and called for ensuring availability of quality seeds and good quality pesticides.

Mean while central leader of Pakistan Hosiery Manufactures Association Javed Bilwani said regarding the alarmingly low cotton production said that government should take the matter seriously. He also said that government should take steps on war footings and in right direction to increase the production of cotton. He further said that cotton crop is very important for the country as the textile industry of the country depends on the cotton crop.

Naseem also told that spinning industry may have to fulfil close to half of its cotton requirement through imports during the ongoing season, as domestic production may struggle to exceed 6 million bales. Damage due to extreme weather only partly explains the low output, which is primarily attributable to the crop falling out of favour with growers, a storm that has long been in the brewing.

Naseem told that 4000 bales of Khairpur were sold at RS 8450 to Rs 8800 per maund, 2400 bales of Rohri were sold at Rs 8525 to Rs 8900 per maund, 1600 bales of Haroonabad were sold at RS 9350 to RS 9500 per maund, 400 bales of Rahim Yar Khan, 400 bales of Khanpur were sold at Rs 9450 per maund, 200 bales of Liaquatpur, 200 bales of Chani Goth were sold at Rs 9400 per maund and 800 bales of Yazman Mandi were sold at Rs 9275 per maund.

He told that rate of cotton in Sindh was in between Rs 8400 to Rs 9200 per maund. The rate of cotton in Punjab is in between Rs 8800 to Rs 9400. He also told that Phutti of Sindh was sold in between Rs 3300 to Rs 4200 per 40 Kg. The rate of Phutti in Punjab is in between Rs 3700 to Rs 4600 per 40 Kg.

The rate of Banola in Sindh was in between Rs 1600 to Rs 1750 while the price of Banola in Punjab was in between Rs 1500 to Rs 2200. The rate of cotton in Balochistan is in between Rs 9000 to Rs 9100 while the rate of Phutti is in between Rs 4000 to Rs 5000.

The Spot Rate remained unchanged at Rs 9250 per maund. The Polyester Fiber was available at Rs 158 per Kg.

Copyright Business Recorder, 2020