KARACHI: The local cotton market remained stable on Saturday. Cotton Analyst Naseem Usman told that market volume remained low.
Prime Minister Imran Khan sought proposals from industrialists on corporate farming to increase productivity of agriculture sector.
The prime minister was talking to a delegation of leading industrialists who called on him at the Prime Minister’s Office.
The prime minister, while talking to the delegation, said that proposals suggested by industrialists are being incorporated by the government in decision-making as prosperity of the country is linked with the development of the industrial sector.
The members of delegation said foreign exchange reserves have increased. According to them, an increase in exports and acceleration in construction activities despite the challenge of coronavirus had positive impacts on the economy. They acknowledged that the current account deficit has become positive due to the government’s efforts.
Naseem also told that the Cabinet Committee on Energy (CCoE) is said to have approved supply of electricity to textile sector at cents 7.5/kWh for two months from December 1, 2020 subject to closure of captive power plants.
The decision was taken during discussion, on natural gas load management during 2020-21. In December 2020, total consumption will be 2,126 MMCFD whereas shortfall will be around 61 MMCFD; in January 2021, consumption will be 2,321 MMCFD and expected shortfall will be 250 MMCFD. The CNG sector and captive power plants will face complete closure during next two months.
Petroleum Division informed the CCoE that recently the ECC has approved recovery of RLNG diversion cost, which is now with OGRA for implementation, expecting that with the implementation of approved mechanism, the recovery of accumulated amount/diversion cost will commence.
Moreover, ICE cotton futures rose on Friday, supported by a strong weekly exports sales report from the US government and a sagging dollar. The cotton contract for March was up 0.46 cent, or 0.6%, at 72.82 cents per lb by 11:31 a.m. EST (1631 GMT). However, the contract is down 0.3% so far this week and was heading for its first weekly decline in four.
“The export sales were real good and the dollar is threatening to take out a 2-1/2 year low, so that’s friendly. We’ve got two friendly things working on the market today,” said Rogers Varner, president of Varner Brokerage in Cleveland.
The US Department of Agriculture’s weekly export sales report showed net sales of 354,700 running bales (RB) for 2020/21, up noticeably from the previous week and up 84% from the prior 4-week average.
The dollar index slipped to a near three-month low against its rivals. A weaker greenback makes cotton less expensive for buyers of the natural fibre in other currencies.
Naseem told that 400 bales of Dherki were sold at Rs 9500 per maund, 1000 bales of Saleh Pat were sold at Rs 9200, 1200 bales of Rahim Yar Khan were sold at Rs 9550 to Rs 9600, 200 bales of Bagho Bahar were sold at Rs 9600, 200 bales of Sadiqabad were sold at Rs 9550, 1200 bales of Haroonabad were sold at Rs 9350 to Rs 9500, 200 bales of Dharanwala were sold at Rs 9500, 1200 bales of Fort Abbas were sold at Rs 9450, 200 bales of Muzaffar Garh were sold at Rs 9175, 600 bales of Shujabad were sold at Rs 8650, 400 bales of Layyah and 200 bales of Chistian were sold at Rs 8600.
He told that rate of cotton in Sindh was in between Rs 8800 to Rs 9300 per maund. The rate of cotton in Punjab is in between Rs 8800 to Rs 9700. He also told that Phutti of Sindh was sold in between Rs 3500 to Rs 4500 per 40 Kg. The rate of Phutti in Punjab is in between Rs 3600 to Rs 5000 per 40 Kg.
The rate of Banola in Sindh was in between Rs 1650 to Rs 1800 while the price of Banola in Punjab was in between Rs 1700 to Rs 1900. The rate of cotton in Balochistan is in between Rs 8600 to Rs 9000 while the rate of Phutti is in between Rs 3800 to Rs 4900.
The Spot Rate remained unchanged at Rs 9450 per maund. The Polyester Fiber was available at Rs 158 per Kg.
Copyright Business Recorder, 2020