KARACHI: The local cotton market remained bullish on Tuesday and the trading volume improved. Cotton Analyst Naseem Usman told Business Recorder that the rate of cotton in Sindh is in between Rs 13,800 to Rs 13,900 per maund and the rate of cotton in Punjab reached at Rs 14,000 to Rs 14,100 per maund.
The rate of the new crop of Phutti in Sindh was in between Rs 5,600 to Rs 6,100 per 40 Kg. The rate of Phutti in Punjab is in between Rs 5,700 to Rs 6,100 per 40 Kg. The rate of Banola in Sindh is in between Rs 1,750 to Rs 1,850 per maund. The rate of Banola in Punjab is in between Rs 1,700 to Rs 1,800 per maund. The rate of cotton in Balochistan is Rs 13,600 to Rs 13,800 per maund. The rate of Phutti in Balochistan is Rs 5,900- 6,400 per maund.
1,000 bales of Sanghar were sold at Rs 13,700 to Rs 13,800 per maund,1,600 bales of Shahdad Pur were sold at Rs 13,750 to Rs 13,800 per maund, 1,000 bales of Nawab Shah were sold at Rs 13,800 to Rs 13,825 per maund, 3,000 bales of Tando Adam were sold in between Rs 13,750 to Rs 13,800 per maund, 800 bales of Hyderabad were sold at Rs 13,750 to Rs 13,800 per maund, 200 bales of Mongi Bangla, 600 bales of Bahawal Nagar, 400 bales of Mureed Wala, 200 bales of Toba Tek Singh, 200 bales of Jahanian, 600 bales of Faqeer Wali, 1,200 bales of Vehari, 800 bales of Khanewal, 600 bales of Mian Chanu, 1,000 bales of Samunderi, 600 bales of Burewala, 400 bales of Lodhran, 200 bales of Kasowal, 400 bales of Rajan Pur, 200 bales of Layyah were sold at Rs 14,000 per maund, 1,400 bales of Haroonabad were sold at Rs 14,000 to Rs 14,075 per maund, 1600 bales of Chichawatni were sold in between Rs 13,950 to Rs 14,000 per maund, 600 bales of Dera Ghazi Khan were sold at Rs 13,950 to Rs 1400 per maund and 800 bales of Hasil Pur were sold in between Rs 13,850 to Rs 14,000 per maund.
ICE cotton futures were close to their contract highs on Monday as traders assessed the impact on supply from Tropical Strom Fred that is predicted to bring rain to some key-cotton growing regions.
The cotton futures contract for December was steady at 94.35 cents per lb by 12:55 p.m. EDT, a whisker away from its contract high of 94.70 hit on Friday. Tropical Storm Fred is expected to make landfall in the Florida Panhandle on Monday, potentially bringing rain to parts of Alabama, Georgia and elsewhere in the Southeast and Mid-Atlantic over the next few days.
"The southeast and the Delta has already been inundated over the season with a lot of rain, so for the cotton crop it would not be beneficial to get rain now," said Keith Brown, principal at cotton brokers Keith Brown and Co in Georgia.
The US Department of Agriculture (USDA) last week lowered its US production estimate for the 2021/22 crop year by over half a million bales. Market participants will now eye a weekly crop progress report from the USDA later on Monday.
Cotton also broadly overlooked a spike in COVID-19 cases, especially in top cotton buyer China where a key port was shut last week after a positive case was detected. "While the closure could be a negative for cotton demand and the demand outlook is slightly muted than before, the fact that cotton prices are little changed suggests it wants to go a little higher and is just waiting for some positive peripheral news," Brown added.
Analysts also noted that while political turmoil in Afghanistan weighed on market sentiment, it was unlikely to impact the natural fiber directly. Data showed total open interest fell to 260,317 contracts in the previous session. The Spot Rate remained unchanged at Rs 13,800 per maund. The Polyester Fiber was available at Rs 222 per Kg.
Copyright Business Recorder, 2021