LAHORE: The Spot Rate Committee of the Karachi Cotton Association (KCA) on Wednesday increased the spot rate by Rs 200 per maund and closed it at Rs 17500 per maund.
The Spot Rate Committee of the Karachi Cotton Association on Wednesday increased the spot rate by Rs 200 per maund and closed it at Rs 17500 per maund. The Polyester Fibre was available at Rs 245 per kg.
The market remained bullish and the trading volume remained low.
Cotton analyst Naseem Usman while talking to Business Recorder said that price of Punjab’s Phutti attracted per 40 kilograms prices from Rs 6000 to Rs 7800. The Prime Quality Cotton was available at Rs 17500 per maund.
Cotton of Sindh was traded from Rs 14500 to Rs 17500 per maund, Punjab’s cotton was traded from Rs 15000 to Rs 17500 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 Ghotki were sold at Rs 18200 per maund, 600 bales of Sadiqabad were sold at Rs 17500 to Rs 18000 per maund, 2400 bales of Feroza were sold at Rs 18000 per maund, 200 bales of Rahim Yar Khan were sold at Rs 17500 per maund and 400 bales of Hasil Pur were sold at Rs 16500 per maund.
ICE cotton futures retreated on Tuesday in thin year-end trading from a four-week peak hit in the previous session, as a strong US dollar made the natural fiber more expensive for other currency holders.
The cotton contract for March was down 0.84 cents, or 0.8%, at 111.44 cents per lb by 11:09 a.m. ET (1609 GMT). Prices had on Monday risen to their highest level since Nov. 29 at 112.69 cents.
“We are seeing a little bit of market correction after yesterday’s rally. The dollar is a little higher, so that could be adding a little bit of pressure,” said Bailey Thomen, cotton risk management associate at StoneX Group.
“We’re seeing still a relatively light volume trading overall as a lot of traders are still absent from the market in this holiday week. However, demand for US cotton continues to be pretty robust.”
The dollar index, which measures the currency against six major rivals, rose 0.2% on expectations the Federal Reserve could raise interest rates as early as March to counter rising inflation.
Last week, the US Department of Agriculture’s weekly export sales report showed net sales of 243,900 running bales for 2021/2022, with China being the top buyer.
Speculators cut net long positions in cotton futures by 9 contracts to 69,204 in the week to Dec. 21, data from the Commodity Futures Trading Commission showed on Monday.
The S&P 500 hovered around record highs on Tuesday as conviction in the US economy helped investors shrug off concerns over Omicron-driven travel disruptions and store closures. Oil prices also extended gains.
Total futures market volume fell by 9,986 to 7,573 lots. Data showed total open interest gained 933 to 234,366 contracts in the previous session.
Cotton yarn prices of major varieties gained further today in Indian textile hubs of Mumbai and Tiruppur. Better demand also supported the price gain.
Meanwhile, ICE cotton futures posted a triple digit gain on Monday, reflecting positive trend in the financial and oil markets, and a robust demand outlook for the natural fibre. Cotton contracts for March 2022 closed at 112.28 cents, up 316 points; May 2022 closed at 109.83 cents, up 278 points; December 2022 closed at 91.94 cents, up 123 points. Domestic markets also witnessed upward price trend in cotton trade due to higher demand from spinning mills. ZCE cotton yarn January 2022 futures traded higher by CNY 245 at CNY 27,065 per ton and May 2022 traded higher by CNY 330 at CNY 27,230 per MT today.
Copyright Business Recorder, 2021
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