KARACHI: The local cotton market remained stable on Wednesday. Market sources told that trading volume was also satisfactory.
Cotton Analyst Naseem Usman told that the Economic Coordination Committee (ECC) on Wednesday approved the import of cotton through the Torkham border. The decision has been taken to overcome the shortage of cotton for the textile sector. The cotton will be imported through Afghanistan and the Central Asian States. The permission to import cotton via Torkham will remain applicable till June 30, 2022. The Finance Minister directed the Ministry of Commerce and National Food Security to remove bottlenecks in the import of cotton.
Meanwhile, All Pakistan Textile Mills Association (APTMA) has claimed that there is no shortage of cotton yarn in the domestic market.
APTMA (Sindh-Balochistan region) chairman Asif Inam in a statement strongly denied reports of yarn shortage and its unavailability in the domestic market.
He said that yarn import was allowed from all over the world except India in response to their restriction on import of Pakistani products.
He said that as per the customs data, yarn could be imported from 59 countries.
“The love for India despite the hostile attitude for Pakistani products is not understandable, and the data is strangely fabricated to portray a gloom and doom situation of slight decline in exports by comparing exports of 28 days of February 2021 with 29 days of February 2020 which was a leap year,” he added.
Moreover, ICE cotton futures slipped on Tuesday ahead of a monthly federal supply and demand report, while a break below a key technical level also added some selling pressure. Cotton contracts for May fell 2.94 cents, or 3.3% to 85.38 cents per lb at 11:41 AM EDT. It traded within a range of 85.38 and 88.2 cents a lb.
The United States Department of Agriculture’s World Supply and Demand Estimates (WASDE) report is due at 12 pm EDT, with expectations for a cut in US production and ending stocks. Analysts also expect a hike to US export forecasts.
“(To move higher), the market needs bullish numbers and not friendly numbers,” said Keith Brown, principal at cotton brokers Keith Brown and Co in Georgia, “Friendly numbers” would imply cuts to output forecasts largely in line with expectations, around 200-250 bales, while a “bullish” number would be a cut of 350-450 bales, Brown added.
Nsaseem told that 600 bales of Rahim Yar Khan were sold at Rs 12900 (cond) per maund, 400 bales of Bagho Bahar were sold at Rs 12400 per maund, 430 bales of Liaquat Pur were sold at Rs 12300 per maund and 514 bales of Rohri were sold at RS 12000 per maund.
Naseem also told that rate of cotton in Sindh was in between Rs 10,300 to Rs 11500 per maund. The rate of Phutti in Sindh is in between Rs 4500 to Rs 5100 per 40 kg.
The rate of cotton in Punjab is at Rs 12500 per maund. The rate of Phutti in Punjab is in between RS 4800 to Rs 6300 per 40 kg. The rate of Banola in Sindh was in between Rs 1600 to Rs 2000 while the price of Banola in Punjab was in between Rs 1800 to Rs 2250. The rate of cotton in Balochistan is Rs 12000 per maund. The rate of Phutti of Dalbadin Balochistan is available at Rs 6300 to Rs 6400 per 40 Kg.
The Spot Rate remained unchanged at Rs 12300 per maund. The Polyester Fiber was available at Rs 218 per Kg.
Copyright Business Recorder, 2021
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