KARACHI: The local cotton market on Tuesday over all remained stable. The rate of cotton in Punjab decreased a little bit while the rate of cotton in Sindh witnessed an increasing trend.
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 13300 to Rs 13350 per maund.
The rate of the new crop of Phutti in Sindh was in between Rs 5000 to Rs 5600 per 40 kg. The rate of Phutti in Punjab is in between Rs 5000 to Rs 6000 per 40 kg. The rate of Banola in Sindh is in between Rs 1600 to Rs 1700 per maund. The rate of Banola in Punjab is in between Rs 1650 to Rs 1800 per maund. The rate of cotton in Balochistan is Rs 13100 per maund. The rate of Phutti in Balochistan is Rs 5400 per maund.
2000 bales of Tando Adam were sold in between Rs 13000 to Rs 13100 per maund, 600 bales of Sanghar were sold at Rs 13000 to Rs 13050 per maund, 2200 bales of Shahdad Pur were sold at Rs 120950 to Rs 13050 per maund, 600 bales of Kotri, 800 bales of Hyderabad were sold in between Rs 12950 to Rs 13000 per maund, 600 bales of Nawab Shah were sold at Rs 13000 per maund, 200 bales of Vehari were sold at Rs 13400 per maund, 200 bales of Chichawatni, 200 bales of Burewala and 200 bales of Mian Chanu were sold at Rs13600 per maund.
As global economies return to normal, Pakistan is experiencing a major surge in export orders. As per a BOL report, with $15.4 billion Pakistan’s textile exports reached its highest levels in FY21. Exports in the second half of FY 2021 exceeded that in the first half by 7 per cent. Compared to FY 2019, the second half exports increased by 19.10 per cent against 11.8 per cent in the first half, indicating a robust outlook for the sector in the near-term with order book stretching to 6 million to 9 million.
Hamza Kamal, Investment Analyst, AKD Securities says, strict measures to clamp down the virus spread in competitive economies, yielded some share to the local manufacturers improving Pakistan’s share in the US apparel imports to 2.7 per cent in 5MCY21 from 2.1/1.7 per cent in the same period last year/CY19. Shift in demand fundamentals have turned the table in favour of the spinning players while low cotton output pulled up domestic cotton prices by 54.40 per cent Y-o-Y in FY21 and consequently yarn prices.
The spinning sector posted earnings of Rs2.8 billion in the third quarter of FY 2021, compared with the loss of Rs 60.30 million in the corresponding period of FY 2020, and the profit-after-tax of Rs 269.10 million in the third quarter of FY 2019 with impetus coming from revenue growth of 23.7/21.5 per cent over FY20/19 and expanding the gross margins (in the third quarter of FY 2021, GMs stood at 16.7 per cent, compared to 11.3/8.3 per cent in the corresponding period of FY20/19.
ICE cotton futures were helped up by strength in the stock market and grains on Monday, their first session in a critical month for the crop.
Cotton contracts for December rose 0.8 cent, or 0.9%, to 90.19 cents per lb, by 11:32 am EDT (1532 GMT). They traded within a range of 89.01 and 90.2 cents a lb.
Total futures market volume fell by 8,939 to 10,264 lots. Data showed total open interest fell 817 to 248,538 contracts in the previous session.
The Spot Rate remained unchanged at Rs 12900 per maund. The Polyester Fiber was increased by Rs 4 per kg and was available at Rs 220 per kg.
Copyright Business Recorder, 2021
Comments
Comments are closed.