KARACHI: The Spot Rate Committee of the Karachi Cotton Association (KCA) on Wednesday increased the spot rate by Rs 100 per maund and closed it at Rs 13000 per maund.
The local cotton market over all remained stable. The market was stable in Punjab while in Sindh market was bullish.
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.
3000 bales of Tando Adam were sold in between Rs 13100 to Rs 13200 per maund, 1400 bales of Shahdad Pur were sold at Rs 13050 to Rs 13100 per maund, 1200 bales of Nawab Shah, 1200 bales of Sanghar were sold in between Rs 131000 to Rs 13100 per maund, 600 bales of Noabad were sold at Rs 13100 per maund, 200 bales of Sarhari were sold at Rs 13050 per maund, 400 bales of Mir Pur Khas, 200 bales of Matyari were sold at Rs 13000 per maund, 800 bales of Hyderabad were sold in between Rs 13000 to Rs 13100 per maund, 600 bales of Chichawatni were sold at Rs 13350 to Rs 13500 per maund, 200 bales of Burewala were sold at Rs 13400 per maund, 200 bales of Lodhran, 200 bales of Gojra, 100 bales of Mureedwala were sold at Rs 13350 per maund, 400 bales of Bahwalpur, 400 bales of Mungi Bangla, 400 bales of Samundri and 400 bales of Vehari were sold at Rs 13300 per maund.
Cotton Analyst Naseem Usman told Business Recorder that global cotton production is expected to show a recovery in the 2021/22 season. After plummeting by 7 percent in 2020/21 compared to 2019/20, it is expected to recover in 2021/22 by increasing 3percent to reach 25 million tonnes.
This production will be led by India, China, Brazil and USA. In 2021/22, US cotton production is projected to be 22percent higher at 3.8 million tonnes. The increase in production is mainly explained by a projected surge of 27percent on the harvested area to 4.2 million hectares. This estimate assumes a historically low 10 percent abandonment rate.
Nevertheless, the expected harvested area is still lower than it was in pre-pandemic seasons. The US average yield is expected to be at 912 kg/ha, lower than the ten-year average of 942 kg/ha, which makes this projection still achievable.
Pakistan showed a drastic decline in its harvested area and production levels during the 2020/21 season. The area dropped by 21percent to 2 million hectares and production decreased by 33percent to 890,000 tonnes. This reduction was mainly due to uncertain climate conditions, pest attacks and better prices and government support for competing crops which made them shift to other crops like sugarcane and maize. Pakistan’s cotton production is expected to remain at the same levels for the 2021/22 season. To support Pakistan’s domestic demand, it is expected that the country will rely on increased imports.
The Secretariat’s current price forecast of the season-average A index for 2021/22 ranges from 73 cents to 125 cents, with a midpoint at 95.43 cents per pound.
Meanwhile, farmers Advisory Committee (FAC) issued its fortnightly guidelines for cotton farmers applicable from Aug 1-15 advising farmers to drain out stagnant water from field in case of rains and do not let crop under stress to make the most of its ongoing phase of flower and boll formation.
In the fifth FAC meeting chaired by director Central Cotton Research Institute (CCRI) Multan Dr Zahid Mahmood and attended by experts, farmers were urged not to let crop face shortage of implements like water, fertilizers to continue their growth momentum. However, farmers should avoid water application in case of rains and opt for only light irrigation when needed. Farmers must not let rainwater stagnating, experts said adding that it should be drained out.
ICE cotton futures were little changed on Tuesday as stable demand was complemented by the likelihood of good production. Cotton contracts for December were down 0.10 cent, or 0.1percent, to 89.53 cents per lb at 11:20 am EDT (1520 GMT). They traded within a range of 89.03 and 89.75 cents a lb. Prices are balanced between good demand and what could be some record yields in some US states, with Texas doing quite well, said Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi.
The Spot Rate Committee of the Karachi Cotton Association increased the spot rate by Rs 100 per maund and closed it at Rs 13000 per maund. The Polyester Fiber was available at Rs 220 per kg.
Copyright Business Recorder, 2021