KARACHI: The local cotton market remained bullish on Wednesday and the trading volume was good.
Cotton Analyst Naseem Usman told Business Recorder that reason behind bullish trend in cotton market is that dollar crossed Rs 165 and reached at Rs 166.40 paisas which were highest in ten months. It is expected that it will reach at Rs 170. The price of cotton in Pakistan has increased by 10 percent. 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 Rajan Pur to DG Khan is under attack of While Fly while the cotton crop in Rahim Yar Khan is under attack of White Fly and Thrips. There is no chance that rate of cotton will drop in near future.
Naseem Usman told that real fight for cotton is going on in the plains of Punjab where traders of Sindh and Punjab are very active to get cotton. He also told that around 150 vehicles of cotton were daily going to Sindh from Punjab.
The rate of cotton in Sindh is in between Rs 13750 to Rs 14000 per maund and the rate of cotton in Punjab is in between Rs 13900 to Rs 14300 per maund which is highest in ten years.
The rate of the new crop of Phutti in Sindh was in between Rs 5700 to Rs 6200 per 40. The rate of Phutti in Punjab is in between Rs 5700 to Rs 6150 per 40. 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 1900 per maund. The rate of cotton in Balochistan is Rs 13800 to Rs 13900 per maund. The rate of Phutti in Balochistan is Rs 6200-7000 per maund.
600 bales of Saleh Pat, 400 bales of Rani Pur were sold in between Rs 13900 to Rs 13950 per maund, 1400 bales of Tando Adam were sold in between Rs 13750 to Rs 13850 per maund, 1800 bales of Sanghar were sold at Rs 13700 to Rs 13800 per maund, 1400 bales of Shahdad Pur were sold at Rs 13750 to Rs 13800 per maund, 400 bales of Nawab Shah, 200 bales of Bandhi were sold at Rs 13900 per maund, 600 bales of Mir Pur Khas were sold at Rs 13725 to Rs 13775 per maund, 600 bales of Hyderabad, 400 bales of Kotri were sold at Rs 13750 per maund, 200 bales of Dera Ghazi Khan were sold at Rs 14100 per maund, 200 bales of Rajan Pur, 200 bales of Tunsa Shareef, 300 bales of Chichawatni, 400 bales of Mian Channu, 100 bales of Kasowal, 400 bales of Marrot, 200 bales of Pir Mahal, 200 bales of Layyah, 400 bales of Burewala, 200 bales of Hasil Pur, 200 bales of Bahawalpur, 200 bales of Ahmed Pur East, 200 bales of Khan Pur, 200 bales of Rahim Yar Khan and 200 bales of Sadiqabad were sold at Rs 14000 per maund.
1000 bales of Haroonabad were sold in between Rs 13950 to Rs 14000 per maund, 200 bales of Faqeer Wali were sold at RS 13975 per maund, 400 bales of Toba Tek Singh were sold at Rs 13850 per maund and 600 bales of Mongi Bangla were sold at Rs 14000 to Rs 14100 per maund.
Adviser to Prime Minister on Commerce and In-vestment Abdul Razak Dawood on Tuesday has released Rs 6 billion under Drawback on Local Taxes and Levies (DLTL) schemes.
This includes Rs. 5.6 billion for Textiles sector and Rs 400 million for Non-Textile sector, the Ad-viser said this on his official twitter account. “I hope this will contribute to improving the liquidity issues of our exporters and enable them to enhance Pakistan’s exports” he said.
Last Friday, I visited Gujranwala Chamber of Commerce and Industry (GCCI) where I had positive interactive session with members, he said. The Adviser said that GCCI is a very progressive Chamber having diversified product range and substantial exports.
He said that Gujranwala has all the potential to become a major “Engineering Hub of Pakistan” and play a prominent role in Pakistan’s economic development. ICE cotton futures weakened on Tuesday, after a federal weekly report indicated improvement in crop conditions, boosting concerns of increased supplies in a tight market.
Cotton contracts for December fell 0.09 cent, or 0.1percent, to 93.27 cents per lb, by 11:49 am EDT (1549 GMT). Earlier, the contract dropped as much as 1.6percent to 91.91 cents per lb.
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 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.
Copyright Business Recorder, 2021
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