LAHORE: The local cotton market on Wednesday remained bearish while the trading volume remained low.
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 9000. Cotton of Sindh was traded from Rs 18000 to Rs 20,000 per maund; Punjab’s cotton was traded from Rs 18,000 to Rs 20,000 per maund.
He also told that 400 bales of Fort Abbas were sold at Rs 19,200 per maund and 400 bales of Pano Aqil were sold at Rs 21,500 per maund. He also told that 400 bales of Dherki were sold at Rs 21,000 per maund.
ICE cotton futures dipped on Tuesday, tracking weakness in equity markets due to escalating Russia-Ukraine tensions and possible sanctions.
The most-active cotton contract on ICE - the second-month May contract – was down 0.85 cent, or 0.7%, at 120.31 cents per lb, at 13:05 EST. It traded within a range of 120.09 and 121.2 cents a lb.
“Clearly, the Russia-Ukraine situation is keeping everybody on the edge with the stock market being down, cotton is just sort of watching that,” said Keith Brown, principal at Keith Brown and Co in Georgia.
Wall Street’s main indexes slumped as the prospect of harsh Western sanctions against Russia over its conflict with Ukraine kept investors on edge.
Russian President Vladimir Putin recognized two breakaway regions in eastern Ukraine and ordered troops to those regions, inviting fresh Western sanctions. The dollar was down 0.1% against its rivals. A weaker greenback makes cotton less expensive for holders of other currencies.
Speculators cut net long positions in cotton futures by 5,169 contracts to 72,714 in the week to Feb. 15, data from the Commodity Futures Trading Commission showed on Friday.
Total futures market volume fell by 12,768 to 11,410 lots. Data showed total open interest fell 13 to 236,269 contracts in the previous session.
The Spot Rate remained unchanged at Rs 20,100 per maund. Polyester Fiber was available at Rs 268 per kg.
Copyright Business Recorder, 2022
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