No visible change on cotton market

LAHORE: Dullness prevails in the local cotton market on Thursday while the trading volume low.

Cotton Analyst Naseem Usman told Business Recorder that Spot Rate remained unchanged. He also told that rate of cotton in Punjab and Sindh is in between Rs 18000 to Rs 20,000 per maund.

Cotton Analyst Naseem Usman told that ICE cotton futures rose more than 1% on Wednesday helped by a weaker dollar and as Wall Street rallied on hopes for progress in Russia-Ukraine peace talks.

The most active May cotton contract on ICE futures was up 1.26 cent, or 1.1%, at 119.86 cents per lb, by 12:03 p.m. ET.

“The dollar is down and the stock market is showing some strength, these are certainly helping out cotton,” said Jack Scoville, vice president at Chicago-based Price Futures Group.

The dollar index was down 0.4% against its rivals, making cotton cheaper for overseas buyers.

Wall Street’s main indexes jumped as signs of progress in Ukraine-Russia peace talks lifted sentiment ahead of a widely expected interest rate hike by the Federal Reserve.

“Another thing that is helping sentiment is that Shanghai said it’s not going to close down just yet and is encouraging workers to work,” Scoville added. While China’s main ports remain open and vessels are continuing to dock, congestion is building up and some container ships are re-routing to avoid expected delays, according to ship owners, analysts and supply chain managers.

China is one of the top consumers of US cotton. Meanwhile, Chicago wheat fell, giving back some of its day-earlier gains while soybeans rose.

Investors now await the US Department of Agriculture (USDA) weekly export sales report due on Thursday.

Total futures market volume fell by 10,502 to 13,214 lots. Data showed total open interest fell 4,288 to 220,258 contracts in the previous session. The Spot Rate remained unchanged at Rs 20,000 per maund. Polyester Fiber was available at Rs 285 per kg.

Copyright Business Recorder, 2022