KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Saturday increased the spot rate by Rs 300 and closed it at Rs 12600 per maund.
Market sources told that market remained stable. Trading volume remained thin. The rate of cotton in Sindh is in between Rs 13000 to Rs 13300 per maund. The rate of cotton in Punjab is between Rs 13500 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 6400 per 40 Kg. The rate of Banola in Sindh is in between Rs 1800 to Rs 2000 per maund. The rate of Banola in Punjab is in between Rs 2200 to Rs 2300 per maund.
Chairman Pakistan Cotton Ginners Association Dr Jasu Mal while chairing the meeting of cotton ginners in Sukkur said that with the imposition of new taxes in the federal budget it is feared that ginning industry will be permanently shut.
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. The Cotton ginners had stopped the buying of Phutti.
PCGA said that cotton production in Sindh was witnessing a decline for the last three years. Due to the shortage of Phutti 50% factories were facing difficulties in running their operations.
The country’s textile group exports have witnessed a decline of 20.45 percent in May 2021, standing at $1.060 billion compared to $1.332 billion during April 2021, the Pakistan Bureau of Statistics (PBS) said. The exports and imports data released by the PBS revealed that the textile group exports registered an increase of 41.14 percent on year-on-year basis as it reached $1.060 billion in May 2021 compared to $751.124 million in May 2020.
The country’s textile group exports have witnessed 18.85 percent growth during the first 11 months (July-May) 2020-21 and remained at $13.748 billion compared to $11.567 billion during the same period of last year. Raw cotton exports registered 96.51 percent decline during July-May 2020-21 and remained at $0.593 million compared to $17.002 million during the same period of last year.
Raw cotton exports remained zero during May 2021 and were also zero in April 2021. Cotton yarn exports registered 1.60 percent decline during July-May 2020-21 and remained at $896.034 million compared to $910.577 million during the same period of last year. Cotton yarn exports declined by 29.84 percent during May 2021 and remained at $72.084 million compared to $102.736 million during April 2021 and increased by 38.63 percent when compared to $51.997 million during the same month of last year.
ICE cotton futures rebounded on Friday from a more than two-week low hit in the previous session, taking cues from the grains market, although the natural fiber was still on course to register its biggest weekly decline in five.
Cotton contracts for December rose 1.29 cent, or 1.5%, at 85.35 cents per lb, by 12:14 p.m. EDT (1614 GMT), having slipped to their lowest since June 1 at 83.37 cents on Thursday.
For the week, prices were down 2.9%, their worst since the week ended May 14. “Corn and beans are all up pretty sharply, so part of it’s just a rebound after the big sell off yesterday. The other part is the weather is kind of dry now in Texas again and could be affecting production potentially,” said Jack Scoville, vice president at Chicago-based Price Futures Group. Meanwhile, a heat wave in top cotton growing state Texas continued to threaten the crop.
The Spot Rate remained unchanged at Rs 12300 per maund. The Polyester Fiber was available at Rs 205 per Kg.
Copyright Business Recorder, 2021