KARACHI: The local market remained stable on Wednesday. Market Sources told that trading volume remained thin.
Market Sources told that the rate of cotton in Sindh is in between Rs 13000 to Rs 13200 per maund. The rate of cotton in Punjab is ion between Rs 13000 to Rs 14000 per maund.
The rate of new crop of Phutti in Sindh was in between Rs 5700 to Rs 5900 per 40 kg. The rate of Phutti in Punjab is in between Rs 6200 to Rs 6600 per 40 kg. The rate of Banola in Sindhis in between Rs 1800 to Rs 1900 per maund. The rate of Banola in Punjab is in between Rs 2200 to Rs 2250 per maund.
Cotton Analyst Naseem Usman told Business Recorder that Pakistan Cotton Ginners Association has written a letter to Cotton Commissioner for imposing a ban on shifting of Phutti from Sindh to other provinces.
PCGA said that cotton production in Sindh was witnessing a decline for the last three years. Due to the shortage of Phutti 50 percent factories were facing difficulties in running their operations.
Mean While, Food minister was informed that cotton sowing was completed on over 84 percent or 1.96 million hectares out of 2.32 million hectares of cotton target area, with output target likely to be achieved this season.
Federal Minister for National Food Security and Research Syed Fakhar Imam chaired a meeting in this regard, where he took stock of the situation and reviewed input positions to discuss cotton intervention price, a statement said.
The meeting was attended by senior officials of the Ministry of National Food Security and Research and representatives of all provincial ministries and allied departments.
The minister said that cotton output target was fixed at 10.51 million bales during the current season. Representatives of the Agriculture Ministry of Sindh informed the meeting that due to shortage of irrigation water during the season, cotton sowing was not progressing fast, and stressed the need for taking measures to enhance area under cotton production.
About 84 percent targets for the current season had so far been achieved and figures were expected to further increase during the coming days.
The meeting was apprised about cotton cultivation across the potential areas of all four provinces. Punjab has sowed over 1.35 million hectares against the set target of 1.6 million hectares, while Sindh has sowed 0.533 million hectares out of its set target of 0.64 million hectares during the current crop sowing season.
The minister said that the government was taking measures to enhance productivity of all major crops including cotton to achieve sustainable economic development and social prosperity.
Moreover, ICE cotton futures rose on Tuesday, rebounding from a sharp plunge in the previous session, buoyed by technical support and an outlook for dry weather in Texas as focus turns to a month-end acreage report.
Cotton contracts for December rose 0.40 cent, or 0.5percent, at 86.53 cents per lb, by 12:56 pm EDT (1656 GMT). Prices had dropped to its lowest since June 1 at 83.92 cents on Monday.
Cotton could be finding support from forecasts pointing to Texas weather running dry for about 10 days, said Rogers Varner, president of Varner Brokerage in Cleveland. Texas has been hit by a heat wave, with forecasts of over 90 degrees Fahrenheit (32°C).
Market participants now await the June 30th acreage report for clues on the production estimate for the US 2021/22 crop.
“My guess is that the acres are going to be about three quarter of a million less than the March intentions,” Varner added. In March, the US Department of Agriculture estimated all cotton planted area for 2021 at 12.0 million acres. Prices are also receiving support at the 100-day moving average level, said Jon Marcus, president of Lakefront Futures and Options brokerage in Chicago.
The US Department of Agriculture’s (USDA) weekly crop progress report showed 90percent of the crop was planted versus 71percent the week before, while 45percent was in good to excellent condition, down from 46percent a week ago.
“US cotton exports are expected to retain its steady pace through next season but that is offset by higher production,” OCBC bank said in a note. “The planting pace, soil moisture and even crop conditions are all hovering around the 5Y average-meaning any drive higher in prices would have to come from increased demand, which we see as unlikely given the already robust pace
The Spot Rate remained unchanged at Rs 12300 per maund. The rate of Polyester Fibre was increased by Rs 3 per kg and was available at Rs 205 per Kg.
Copyright Business Recorder, 2021