LAHORE: The local cotton 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 6500 to Rs 8900. 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 also told that 1676 bales of Ghotki were sold at Rs 22000 per maund (conditional).
The Federal Cabinet has approved revised Textile and Apparel Policy 2020-25, after resolution of dispute between Commerce Ministry and Energy Ministry on energy (electricity and RLNG) prices for the textile and apparel sector.
According to official documents, the new language of para 2.2.2 of page 215 will now be as follows “energy (electricity and RLNG) will be provided to the export-oriented units/ sectors of textiles and apparel industry at regionally competitive rates throughout the policy years.” The decision further says that an exercise will be conducted by Ministry of Commerce jointly with the Ministry of Energy (Power and Petroleum Divisions) and the Finance Division during pre-budget consultative sessions annually to review the energy tariffs.
“The rates may be revised on an average of energy prices for industrial consumers of regional competitors and announced in federal budget along with budgetary allocations by Finance Division as actually required by Ministry of Energy so that energy regime would remain fully funded throughout the policy years. For the captive and the cogeneration units, a separate policy will be made by the Ministry of Energy in consultation with the Ministry of Commerce and Finance Division”.
The original language in the draft policy was “energy (electricity and RLNG) will be provided to the export oriented units/ sectors of textile industry at regionally competitive rates throughout the policy years without any disparity among the provinces. During FY 2021-22, electricity will be provided at US cents 9 per kWh all-inclusive and RLNG at US$ 6.5 per Mmbtu al-inclusive. However, an exercise will be conducted jointly with the Ministry of Energy (Power and Petroleum Divisions) during pre-budget consultative sessions annually to review the energy tariffs.
In case of abnormal fluctuations in regional energy prices, rates may be revised on an average of energy prices for industrial consumers of the regional competitors (Vietnam, Bangladesh, etc.) and announced in Federal Budget along with budgetary allocations by Finance Division as actually required by Ministry of Energy so that energy regime would remain fully funded throughout the policy years.”
In para VI (a) on page 8, “without any disparity among provinces” will be deleted. The original language was “supply of energy (electricity and RLNG) to export oriented units/ sectors of textile industry at regional competitive rates throughout the policy years without any disparity among the provinces.”
On page 24, of the draft policy, ‘Financial Matrix’ will be deleted. This matrix was related to rates of RLNG and electricity.
ICE cotton futures steadied on Tuesday, as the dollar softened after signs of easing tensions between Russia and Ukraine, although weakness in oil and grains limited gains.
The March contract on ICE futures was little changed at 122.94 cents per lb, by 12:30 p.m. ET. It traded within a range of 122.5 and 123.45 cents a lb.
On Monday, the contract fell to its lowest level since Jan. 28 at 121.62 cents.
“The market is still unhappy with last week’s supply-demand numbers, which were neutral to negative, and then the export sales numbers were sort of slow as well,” said Keith Brown, principal at Keith Brown and Co in Georgia.
“Also, the market is keeping one eye on the Russian-Ukrainian situation,” Brown added.
Russia said some of its military units were returning to their bases after exercises near Ukraine and that Moscow was prepared to continue dialogue on missiles and other security issues with the West....
The signs of easing tensions sent oil prices almost 4% lower on Tuesday. Lower oil prices make polyester, a substitute for cotton, less expensive.
The dollar index fell 0.3% against its rivals. A weaker greenback makes cotton less expensive for holders of other currencies.
U.S. wheat futures also fell sharply as Moscow’s announcement tempered investor fears of a Russian invasion of Ukraine that could disrupt Black Sea export flows, while U.S. corn and soybeans fell too.
Total futures market volume fell by 22,218 to 25,482 lots. Data showed total open interest fell 5,617 to 249,713 contracts in the previous session.
The Spot Rate remained unchanged at Rs 20,200 per maund. The rate of Polyester Fiber was increased by Rs 3 and was available at Rs 268 per kg.
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