LAHORE: The local market on Wednesday remained steady and the trading volume remained low. The Spot Rate remained unchanged.
Cotton Analyst Nasseem Usman while talking to Business Recorder said that price of Punjab’s Phutti attracted per 40 kilograms prices from Rs 7000 to Rs 8600. Cotton of Sindh was traded from Rs 15500 to Rs 20,000 per maund, Punjab’s cotton was traded from Rs 16500 to Rs 20,000 per maund. He told that 1200 bales of Rahim Yar Khan were sold at Rs 19500 per maund.
He also told that 400 bales of Bagho Bahar were sold at Rs 19400 per maund,1 400 bales of were sold at Rs 16400 per maund and 900 bales of Ali Pur were sold at at Rs 16500 per maund.
ICE cotton futures held steady on Tuesday, buoyed by firm demand for the natural fiber and a rebound in the oil market, although a stronger dollar kept gains in check.
The March contract on ICE futures was little changed at 120.45 cents per lb, by 11:02 a.m. ET, after falling to a near one-week low in the previous session. It traded within a range of 120.25 and 121.44 cents per lb.
“Demand profile, especially from Asia, has been very, very strong. That’s still supporting the market in through here,” said Jack Scoville, vice president at Chicago-based Price Futures Group.
“Cotton prices went down (yesterday) and found some fund buying there. Also, higher oil prices are offering support to the market here today.”
Oil prices rose more than 1% on concerns supplies could become tight due to the Ukraine-Russia tensions. Higher oil prices make polyester, a substitute for cotton, more expensive.
Last week’s weekly U.S. export sales report showed net sales of 273,000 running bales of cotton for 2021/2022, up 12% from the prior 4-week average, with top buyers being Pakistan and China.
Meanwhile, the dollar rose 0.3% to a two-week high against its rivals, making the natural fiber more expensive for overseas buyers. USD/
Appetite for riskier assets remained weak as tensions between Russia and the West over Ukraine weighed on investor sentiment ahead of the outcome of this week’s U.S. Federal Reserve policy meeting.
Total futures market volume fell by 19,420 to 12,331 lots. Data showed total open interest gained 1,280 to 251,134 contracts in the previous session.
The Spot Rate remained unchanged at Rs 19300 per maund. Polyester Fiber was available at Rs 263 per kg.
Copyright Business Recorder, 2022
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