LAHORE: The spot rate remained unchanged on Friday. The market remained steady and the trading volume remained low.
Cotton analyst Naseem Usman while talking to Business Recorder told that price of Phutti of Sindh was traded from Rs 4500-7600 per 40 kilograms; Punjab’s Phutti attracted per 40 kilograms prices from Rs 6000 to Rs 7800. The Prime Quality Cotton was available at Rs 17,500 per maund.
Similarly, Phutti from Balochistan was traded at Rs 6500 per 40 kilograms to Rs 8200 per 40 kilograms.
Cotton of Sindh was traded from Rs 13,500 to Rs 17,000 per maund, Punjab’s cotton was traded from Rs 14,500 to Rs 17,000 per maund and Balochistan’s cotton prices remained from Rs 16,000 per maund to Rs 16,500 per maund.
While Banola from Sindh was traded from Rs 1,400 to Rs 2,300 per maund, Punjab’s crop was traded from Rs 1,800 to Rs 2,400 per maund and Balochistan’s Banola was traded from Rs 1,700 to Rs 2,300 per maund, added Naseem Usman.
As many as 800 bales of Rahim Yar Khan were sold at Rs 16,500 to Rs 17,000 per maund and 400 bales of Chichawatni were sold at Rs 17,400 per maund.
1ICE cotton futures rose on Thursday and were on track for a third straight weekly gain on strong demand outlook for the natural fiber as worries over the Omicron corona virus variant eased.
The cotton contract for March was up 0.57 cents, or 0.5%, at 109.40 cents per lb by 12:39 p.m. ET (1739 GMT). It traded within a range of 108.21 and 109.45 cents per lb. The contract was on course for weekly gain of 2%.
“Investors seem to have a general underlying feeling that Omicron may not be very severe and commodity prices will rise, moving into the new year,” said Keith Brown, principal at Keith Brown and Co in Georgia.
Wall Street’s main indexes rose after early data suggested the Omicron variant of the corona virus was less severe than feared.
Oil prices also extended gains. Higher oil prices make polyester, a substitute for cotton, more expensive.
Meanwhile, the US Department of Agriculture’s weekly export sales report showed net sales of 243,900 running bales for 2021/2022, down 15% from the previous week and 21% from the prior 4-week average.
“Since it was the week before Christmas, the sales were pretty decent. Shipments have improved and as supply chain crisis is resolved, the US will ship more cotton,” Brown said.
Total futures market volume fell by 7,695 to 6,499 lots. Data showed total open interest gained 2,344 to 232,268 contracts in the previous session.
Meanwhile, Finance Minister of Punjab, Hashim Jawan Bakht has assured All Pakistan Textile Mills Association (APTMA) of pursuing the issue of non-supply of gas for export oriented units in Punjab with the federal government at all appropriate levels while admitting that it has caused a colossal loss and disruption to the textile sector. The Minister was talking to APTMA delegation led by Abdul Rahim Nasir, Central Chairman, Hamid Zaman, Northern Zone Chairman, Karman Arshad, Senior Vice Chairman, Asad Shafi, Treasurer, Umar Latif and Raza Baqir, Secretary General of the Association. Rahim Nasir briefed the minister about disconnection of gas supply to all Punjab based mills despite the fact that the mills have accepted enhancement of gas tariff up to $9/MMBTU till March, 2022. He said non-availability of gas has severally effected production and export of textile products. He also highlighted disparity in gas prices between Punjab and other provinces. He added that upward revision in gas tariff from $6.5/MMBTU to $9/MMBTU has further widened the gulf of price difference.
He pointed out that gas prices in Sindh and KPK were $4.87/MMBTU whereas gas price for industry in Punjab has been raised to $9/MMBTU and gas is not at all available even on the said high tariff. He added that gas price of $4.05/MMBTU in Bangladesh and $5.19/MMBTU in India was also much lower than the tariff applicable to Punjab based export industry.
The Spot Rate remained unchanged at Rs 17,400 per maund. The Polyester Fiber was available at Rs 245 per kg.
Copyright Business Recorder, 2021
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