Local cotton market remains easy

KARACHI: The local cotton market remained easy on Friday and the trading volume was satisfactory. Cotton Analyst Naseem Usman told Business Recorder that the rate of cotton in Sindh is in between Rs 13650 to Rs 13800 per maund and the rate of cotton in Punjab reached at Rs 13900 to Rs 14000 per maund.

The rate of the new crop of Phutti in Sindh was in between Rs 5600 to Rs 6200 per 40 Kg. The rate of Phutti in Punjab is in between Rs 5700 to Rs 6200 per 40 Kg. The rate of Banola in Sindh is in between Rs 1700 to Rs 1800 per maund. The rate of Banola in Punjab is in between Rs 1750 to Rs 1850 per maund. The rate of cotton in Balochistan is Rs 13700 to Rs 13900 per maund. The rate of Phutti in Balochistan is Rs 6000- 6400 per maund.

2000 bales of Sanghar were sold at Rs 13750 to Rs 13800 per maund, 1600 bales of Shahdad Pur were sold at Rs 13800 to Rs 13900 per maund, 800 bales of Kotri were sold at Rs 13800 to Rs 13850 per maund, 1600 bales of Tando Adam were sold at Rs 13750 to Rs 13900 per maund, 800 bales of Nawab Shah were sold at Rs 13850 to Rs 13900 per maund, 800 bales of Mir Pur Khas were sold at Rs 13750 to Rs 13800 per maund, 800 bales of Chichawatni were sold in between Rs 14000 to RS 14200 per maund, 600 bales of Khanewal were sold at Rs 14100 per maund, 400 bales of Haroonabad were sold at Rs 14075 to Rs 14100 per maund, 400 bales of Burewala were sold in between Rs 14000 per maund, 200 bales of Rahim Yar Khan, 200 bales of Hasil Pur were sold at Rs 13900 per maund and 400 bales of Toba Tek Singh were sold at Rs 13850 per maund.

According to China Cotton Association's investigation of over 2291 growers and 12 major cotton belts in July 2021, cotton planting areas are assessed at 43.4559 million mu nationwide, a fall of 5.47% year on year, and cotton production is forecast at 5.7631 million tons, down 2.71% year on year, up 0.7 percentage point from the June report. In Xinjiang, the cotton-growing development remains worse than last year, but the insect damage is lighter. The yield of Xinjiang cotton may reduce by 0.71% year on year, and production may be 5.2321 million tons, down 0.22% year on year. In Yellow River Basin, the dry weather prevailed in early July, but at end of July, heavy rainfall was seen, and cotton crops were damaged. The yield is expected to reduce by 0.93% year on year, and production is forecast at 263.3kt, down 33.45% year on year. In the Yangtze River Basin, the weather condition was normal in most cotton belts, and cotton grew well. The yield may rise by 24.48% year on year and production is forecast at 231.7kt, down 6.76% year on year.

As cotton prices continue to rule high, state-run Cotton Corporation of India Ltd (CCI) sees no scope for market intervention in the new season starting October. CCI, which made a record purchase of cotton at the minimum support price (MSP) during the 2020-21 season, expects its carry forward stocks for the next year to be in the range of 2-3 lakh bales.

Apparel exporters in Bangladesh have expressed concern over the rise in yarn prices in the domestic market. With the country receiving more work orders as stores open in Europe and the United States following mass vaccination in those countries, an unusual increase in yarn prices has made it tough for garment manufacturers to accept the orders, they lamented.

Representatives of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Bangladesh Terry Towel & Linen Manufacturers & Exporters Association (BTTLMEA) said this at a meeting held at the BGMEA office on August 8. BGMEA president Faruque Hassan chaired the meeting. They said domestic mills are increasing yarn prices every day and providing proforma invoice with a short time limit, which makes it difficult to open letter of credit.

The Spot Rate remained unchanged at Rs 13800 per maund. The Polyester Fiber was available at Rs 222 per Kg.

Copyright Business Recorder, 2021