KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Thursday decreased the spot rate by Rs 200 per maund and closed it at Rs 12900 per maund. The local cotton market bearish and trading volume remained low.
Cotton Analyst Naseem Usman told Business Recorder the rate of cotton in Sindh is in between Rs 12600 Rs 12700 per maund. The rate of cotton in Punjab is in between Rs 13000 to Rs 13100 per maund.
The rate of new crop of Phutti in Sindh was in between Rs 5600 to Rs 5800 per 40 Kg. The rate of Phutti in Punjab is in between Rs 5500 to Rs 6200 per 40 Kg. The rate of Banola in Sindh is in between Rs 1800 to Rs 1800 per maund. The rate of Banola in Punjab is in between Rs 1800 to Rs 2000 per maund. The rate of cotton in Balochistan is Rs 13000-13100 per maund. The rate of Phutti in Balochistan is in between Rs 5700 to RS 5800 per maund. The rate of cotton in Punjab dipped by Rs 500 to Rs 600 per maund while the rate of cotton in Sindh decreased by Rs 400 to Rs 500 per maund due to rains.
1000 bales of Sanghar were sold at Rs 12700 to RS 13000 per maund, 600 bales of Tando Adam were sold at Rs 12900 to Rs 13000 per maund, 600 bales of Shahdad Pur were sold at Rs 12700 to Rs 12900 per maund, 900 bales of Chichawatni were sold in between Rs 13000 to 13400 per maund, 400 bales of Mongi Bangla were sold at Rs 13400 per maund, 200 bales of Vehari , 200 bales of Burewala were sold at Rs 13000 per maund and 200 bales of Hasil Pur were sold at Rs 13400 per maund.
ICE cotton futures for December 2021 rose to their highest level on Wednesday, helped along by positive sentiment in key grains, Wall Street and a lower dollar. Cotton contracts for December rose 1.08 cent, or 1.2%, at 89.54 cents per lb, at 13:19 p.m. EDT (1719 GMT) and hit a contract-high earlier as they rose as much as 1.6% to 89.88 cents per lb.
With this move, the December contract got past the previous high of 89.28 cents per lb, set on Feb. 25, a ceiling it had failed to breach so far. “It’s a general lift across the board in agricultural markets and cotton had a good close yesterday, so technically it looks like it wants to go higher,” helped by a weaker dollar and a higher stock market, said Jobe Moss, a broker with MCM Inc in Lubbock, Texas.
The dollar eased and was set to register its worst session since July 2, buoying cotton demand by making the fibre more affordable for buyers with other currencies. Chicago grain futures jumped on Wednesday with corn at a near two-week peak, spilling over into cotton. The S&P 500 index hit a record high on Wednesday after comments from the Federal Reserve fuelled hopes the central bank would stick to its accommodative monetary policy despite a sharp jump in inflation last month.
“We’re looking at a really good possibility of a really nice crop out here in West Texas. One more good rain in August and I wouldn’t be surprised to see 7 million or more bales for West Texas,” which could restrict how high prices go, Moss added.
Meanwhile, Cotton Corporation of India increased the price by Rs 200 to Rs 400 per candy.
The Spot Rate Committee of the Karachi Cotton Association on Thursday decreased the spot rate by Rs 200 per maund and closed it at Rs 12900 per maund. The Polyester Fiber was available at Rs 213 per kg.
Copyright Business Recorder, 2021