Cotton market: Firmness seen amid subdued business

KARACHI: The local cotton market on Friday remained stable and trading volume was low. Cotton Analyst Naseem Usman told Business Recorder the rate of cotton in Sindh is in between Rs 13000 Rs 13100 per maund. The rate of cotton in Punjab is in between Rs 13500 to Rs 13600 per maund.

The rate of the new crop of Phutti in Sindh was in between Rs 4800 to Rs 5300 per 40 kg. The rate of Phutti in Punjab is in between Rs 4800 to Rs 6200 per 40 kg. The rate of Banola in Sindh is in between Rs 1600 to Rs 1800 per maund. The rate of Banola in Punjab is in between Rs 1700 to Rs 1900 per maund. The rate of cotton in Balochistan is Rs 13000-13100 per maund. The rate of Phutti in Balochistan is in between Rs 5000 to RS 5300 per maund.

4200 bales of Tando Adam were sold at Rs 12950 to Rs 13200 per maund, 400 bales of Maqsooda were sold in between Rs 13000 to Rs 13100 per maund, 200 bales of Matyari were sold at Rs 13100 per maund, 400 bales of Mir Pur Khas were sold at Rs 13000 per maund, 200 bales of Sinjhoro, 400 bales of Kotri were sold at RS 13100 per maund, 1200 bales of Sanghar were sold at RS 12900 to Rs 13100 per maund, 300 bales of Chichawatni were sold at Rs 13550 per maund, 100 bales of Gojra, 200 bales of Burewala and 200 bales of Haroonabad were sold at Rs 13600 per maund.

ICE cotton futures dipped on Thursday as producers took advantage of contract highs set in the previous session, while a weaker dollar and strength in Chicago grains reined in losses. Cotton contracts for December fell 0.22 cent, or 0.2%, to 90.30 cents per lb, by 11:38 a.m. EDT (1538 GMT).

Producers could be adding some selling pressure, with speculators also picking up profits from yesterday’s new highs, said Bailey Thomen, cotton risk management associate at StoneX Group.

Cotton’s December 2021 contract touched a new contract high of 91 cents per lb on Wednesday on robust global demand and firmer Chicago grain prices.

Chicago wheat futures rose for a second straight session on Thursday, underpinned by a severe drought curbing yields of top quality US spring wheat. Corn and soybean futures also climbed.

The dollar weakened, limiting the slide in cotton by making the natural fiber more affordable for buyers using other currencies.

The US Department of Agriculture’s weekly export sales report showed net sales of 192,200 running bales (RB) for the 2021/2022 marketing year and exports of 238,300 RB, down 3% from the previous week and 5% from the prior 4-week average. “We have a week’s data left for the 2020/21 crop season, and it looks like those figures are going to be a little below but not far off from the USDA’s estimates,” Thomen said, adding that new crop sales were a “pretty nice figure”.

Total futures market volume fell by 8,831 to 9,603 lots. Data showed total open interest gained 2,239 to 247,615 contracts in the previous session.

Cotton Analyst Naseem Usman also told that according to the statement of chairman Pakistan Cotton Brokers Association Major Muhammad Kashif Islam (r) in its statement said that All Pakistan Textile Mills Association agreement with Uzbekistan for growing cotton is against Pakistan’s economy and farmers. The government should immediately suspend the agreement because it seems to be a continuation of conspiracy.

The Spot Rate remained unchanged at Rs 13000 per maund. The Polyester Fiber was available at Rs 216 per kg.

Copyright Business Recorder, 2021