KARACHI: The local cotton market remained stable on Tuesday and the trading volume remained satisfactory.
Cotton analyst Naseem Usman told Business Recorder that bullish trend will prevail in the cotton market because dollar has reached at Rs 165 and it is expected that it will reach at Rs 170. The price of cotton in Pakistan has increased by 10 %. There is a great demand of cotton in market. The rate of good quality Phutti has reached at Rs 7200 per maund.
The cotton crop in Rajanpur to DG Khan is under attack of White Fly while the cotton crop in Rahim Yar Khan is under attack of White Fly and Thrips. There is no chance that the rate of cotton will drop in near future.
The rate of cotton in Sindh is in between Rs 13750 to Rs 13850 per maund and the rate of cotton in Punjab is in between Rs 13850 to Rs 14000 per maund.
The rate of the new crop of Phutti in Sindh is in between Rs 5700 to Rs 6200 per 40 Kg. The rate of Phutti in Punjab is in between Rs 5600 to Rs 6200 per 40 Kg. The rate of Banola in Sindh is in between Rs 1700 to Rs 1850 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 between Rs 13800 to Rs 13850 per maund. The rate of Phutti in Balochistan is between Rs 6200 and Rs6800 per maund.
However, 1600 bales of Nawabshah were sold at RS 13900 per maund, 200 bales of Maqsooda and 400 bales of Saleh Pat were sold at Rs 13850 per maund. As maOne thousand 1000 bales of Shahdadpur were sold in between Rs 13750 to Rs 13850 per maund, 400 bales of Mirpurkhas were sold at Rs 13750 per maund, 400 bales of Khipro, 400 bales of Bandhi and bales of Sakrand were sold at Rs 13900 per maund.
However, 1500 bales of Chichawatni were sold in between Rs 14100 to Rs 14200 per maund, 1800 bales of Khanewal were sold in between Rs 14000 to Rs 14200 per maund, 400 bales of Bahwalpur were sold at Rs 14150 per maund, 600 bales of Rajanpur were sold at Rs 14100 to Rs 14150 per maund, 400 bales of Mian Channu were sold at Rs 14100 per maund, 800 bales of Haroonabad were sold at Rs 14000 to Rs 14100 per maund and 800 bales of Layyah were sold at Rs 14000 to Rs 14050 per maund.
Moreover, 400 bales of Bureawala, 1400 bales of Vehari, 400 bales of Tunsa Sharif, 600 bales of Lodhran, 400 bales of Dharan Wala, 400 bales of Marrot, 400 bales of Shuja Abad, 400 bales of Faqeer Wali and 200 bales of Sahiwal were sold at Rs 14000 per maund. Six hundred bales of Hasilpur were sold in between Rs 13950 to Rs 14000 per maund, 1200 bales of Dera Ghazi Khan were sold at Rs 14000 to Rs 14100 per maund, 400 bales of Gojra were sold at Rs 13850 per maund and 400 bales of Toba Tek Singh were sold at Rs 13800 per maund.
Due to vessel quarantine requirements, all ships in China will be delayed by 14 to 21 days, depending on their previous port of call. This is a new rule implemented in China. Ships are not allowed to enter the port unless the quarantine period is over. This has also caused ships to wait in ports and led to further crowding
Meanwhile, ICE cotton futures inched up on Monday, lifted by a dip in the dollar and tracking a rebound across broader commodity and financial markets.
Cotton contracts for December were up 0.22 cent, or 0.2%, to 93.32 cents per lb, by 12:15 p.m. EDT (1815 GMT). Prices on Friday hit their lowest levels since Aug. 12.
Making cotton cheaper for buyers holding other currencies and potentially lending a boost to demand, the dollar eased from a nine-month high on Friday. USD/
"Demand ideas are holding up strong and even with the return of COVID-19, economies really don't seem to be closing up and the more economies we see open, the more demand we'll likely see for clothes.
Moreover, global cotton production is projected at 118.8 million bales this season, 6.4 million bales (nearly 6 percent) above 2020/21 but nearly 2.6 million bales (2 percent) below 2019/20. Larger cotton crops are forecast for most of the major cotton-producing countries in 2021/22, with China a notable exception. Global cotton harvested area in 2021/22 is forecast to rise nearly 6 percent to 33.3 million hectares (82.3 million acres). Generally favourable conditions are expected to support the global cotton yield this season, with the yield forecast at 777 kilograms (kg) per hectare (693 pounds per acre) in 2021/22, similar to the previous year.
The Spot Rate remained unchanged at Rs 13800 per maund. The Polyester Fiber was available at Rs 222 per Kg.
Copyright Business Recorder, 2021
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