KARACHI: The local cotton market on Tuesday remained bullish and trading volume remained satisfactory. Cotton Analyst Naseem Usman told Business Recorder the rate of cotton in Sindh is in between Rs 13400 to Rs 13500 per maund. The rate of cotton in Punjab is in between Rs 13600 to Rs 13700 per maund.
The rate of the new crop of Phutti in Sindh was in between Rs 5300 to Rs 6000 per 40 Kg. The rate of Phutti in Punjab is in between Rs 5500 to Rs 6300 per 40 Kg. The rate of Banola in Sindh is in between Rs 1750 to Rs 1850 per maund. The rate of Banola in Punjab is in between Rs 1750 to Rs 1900 per maund. The rate of cotton in Balochistan is Rs 13400 to Rs 13500 per maund. The rate of Phutti in Balochistan is Rs 5800- 6200 per maund.
1000 bales of Shahdad Pur were sold at Rs 13330 to Rs 13500 per maund, 1000 bales of Tando Adam were sold at Rs 13400 to Rs 13500 per maund, 1200 bales of Sanghar were sold at Rs 13350 to Rs 13450 per maund, 400 bales of Mir Pur Khas were sold at Rs 133350 per maund, 200 bales of Kotri were sold at Rs 13400 per maund, 400 bales of Sarhari were sold at Rs 13400 to Rs 13450 per maund, 400 bales of Burewala, 600 bales of Chichawatni, 400 bales of Haroonabad, 200 bales of Hasil Pur, 200 bales of Mian Channu, 200 bales of Murid Wala were sold at Rs 13700 per maund, 400 bales of Peer Mahal were sold at Rs 13625 to Rs 13700 per maund, 200 bales of Toba Tek Sigh were sold at Rs 13600 per maund and 200 bails of Sahiwal were sold at Rs 13700 per maund.
The China state cotton auction policy has been implemented from July 5, 2021, lasting to September 30, 2021, with a total quantity of 600kt. The policy maintains the normalization and mechanism and it is in line with the market regulation. So far, the state cotton auction remains hot. This insight report will analyze from the trading volumes and prices of reserved cotton, reserved cotton quality, and participation of spinning mills and traders, to figure out the structure of reserved cotton.
ICE cotton futures snapped a five-session long streak of gains on Monday, weighed down by weaker grains, a stronger dollar and technical resistance.
Cotton contracts for December fell 1.26 cents, or 1.4%, to 90.44 cents per lb, by 11:04 a.m. EDT (1504 GMT).
ICE cotton futures scaled a new contract peak on Friday, as a strong US jobs report lent a further boost to a positive demand outlook.
"Nothing fundamental has changed since the end of last week, there is definitely some anxiety over how much further this market can go right now, with some resistance at 92 cents before we go back towards the mid 90s" said Jordan Lea, senior trader at DECA Global. Standard influences, the US dollar and Chicago grains, were also likely weighing on cotton, Lea said.
Chicago corn and wheat eased as strength in the dollar and a slide in crude oil curbed US grain prices, countering recent concerns about global harvest prospects. Soya beans also dipped.
Market participants await a federal weekly crop progress report later on Monday and a monthly supply and demand report later this week.
"The market will likely soon begin to add risk premium if rains do not materialize over much of The Belt," Louis Rose, director of research and analytics at Tennessee-based Rose Commodity Group, said in a note.
"Most US cotton growers will likely only see light to moderate shower activity this week - and many growers will be more than ready for another round of showers/rain by the end of the coming week." Total futures market volume fell by 19,227 to 9,777 lots. Data showed total open interest gained 5,485 to 257,301 contracts in the previous session.
The Spot Rate remained unchanged at Rs 13400 per maund. The Polyester Fiber was available at Rs 222 per Kg.
Copyright Business Recorder, 2021