KARACHI: The Spot Rate Committee of the Karachi Cotton Association on Saturday increased the spot rate by Rs 200 per maund and closed it at Rs 14300 per maund.
The local cotton market remained stable and trading volume remained satisfactory. The rate of cotton in Sindh is in between Rs 12000 to Rs 14600 per maund and the rate of cotton in Punjab is in between Rs 14000 to Rs 14800 per maund. The rate of the new crop of Phutti in Sindh was in between Rs 4500 to Rs 6100 per 40 kg. The rate of Phutti in Punjab is in between Rs 5500 to Rs 6400 per 40 kg. The rate of Banola in Sindh is in between Rs 1400 to Rs 1900 per maund. The rate of Banola in Punjab is in between Rs 1600 to Rs 2000 per maund. The rate of cotton in Balochistan is in between Rs 13600- 14500 per maund. The rate of Phutti in Balochistan is Rs 5500- 7200 per maund.
400 bales of Khan Pur, 400 bales of Pano Aqil were sold at Rs 14500 per maund, 400 bales of Sarkand, 600 bales of Nawab Shagh were sold at Rs 14100 per maund, 800 bales of Khair Pur were sold at Rs 13900 to Rs 14000 per maund, 600 bales of Mir Pur Khas, 600 bales of Sanghar were sold at Rs 11500 to Rs 11600 per maund, 800 bales of Lodhran were sold at Rs 14500 per maund, 800 bales of Rahim Yar Khan were sold at Rs 14450 to Rs 14700 per maund, 800 bales of Mian Wali were sold at Rs 14400 to Rs 14600 per maund, 1200 bales of Fort Abbas were sold at Rs 14300 to Rs 14550 per maund, 400 bales of Layyah were sold at Rs 14500 per maund, 1200 bales of Liaquat Pur were sold at Rs 14400 to Rs 14425 per maund, 800 bales of Marrot were sold at Rs 14350 per maund, 600 bales of Haroonabad were sold at Rs 14200 to Rs 14325 per maund, 600 bales of Dharan Wala were sold at Rs 14250 to Rs 14300 per maund and 800 bales of Faqeer Wali were sold at Rs 14300 per maund. Cotton Analyst Naseem Usman told Business Recorder that Vice president, Pakistan Central Cotton Committee (PCCC), Dr. Muhammad Ali Talpur informed International Cotton Advisory Committee (ICAC) in an online meeting that there existed a credible system of cotton statistics compilation in Pakistan and data is collected on scientific lines involving different government departments and private sector.
Last year USDA had issued Pakistan cotton statistics showing cotton production at five million bales and Pakistan representative had raised objections over it, the release said adding that seven (7) million cotton bales was the actual figure obtained through credible sources of government departments and private sector entities and it matched the ground realities.
Meanwhile, the country's textile group exports witnessed 27.41 percent growth during the first quarter (July-September) of current fiscal year and remained $4.420 billion compared to $3.469 billion during the same period of the last fiscal year, says the Pakistan Bureau of Statistics (PBS).
The exports and imports data released by the PBS revealed that textile group exports on month-on-month basis witnessed 1.69 percent growth and remained $1.487 billion in September 2021 compared to $1.462 billion in August 2021.
On year-on-year basis textile group exports witnessed 25.01 percent in September 2021, when compared to $1.189 billion in September 2020.
Cotton yarn exports registered a growth of 69.30 percent during July-September 2021 and remained at $288.617 million compared to $170.475 million during the same period of last year and increased by 72.08 percent in September 2021 and remained $95.228 million when compared to $55.339 million during the same month of last year.
Raw cotton exports witnessed 100 percent decline on month-on-month basis as well as on year-on-year basis.
The US Department of Agriculture's (USDA) weekly export sales report showed a drop in net sales for 2021/2022. China, a primary destination for U.S. cotton over the two prior weeks, saw increases of 12,100 running bales, EXP/COT "Rumours of high Chinese buying were not confirmed by the Tuesday report or today's sales," Varner said, adding the current price levels were still too high.
On Tuesday, cotton retreated sharply after the USDA raised forecasts for global production, but cut Chinese consumption estimates. ... When NY futures fell earlier this week, the spread between Chinese and U.S. futures widened, providing an incentive for arbitraging the two contracts, Peter Egli, director of risk management at British merchant Plexus Cotton, said in a note on Thursday. The December contract is now down over 3% for the week.
Earlier, in addition to strong Chinese demand, heightened speculative interest and limited exportable stock availability ahead of harvest, lifted cotton prices, said Andrew Rawlings, an analyst from Rabobank.
Copyright Business Recorder, 2021