LAHORE: Dullness prevails in the local cotton market on Wednesday while the trading volume remained 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.
ICE Cotton rally takes a breather on wider commodities retreat
ICE cotton futures fell 1% on Tuesday and snapped a three-session winning steak, hurt by weakness in broader commodities following signs of progress in Russia-Ukraine peace talks.
The first-month contract on ICE futures for May was down 1.37 cents, or 1%, at 137.70 cents per lb, by 12:03 p.m. ET (1603 GMT).
“There is a generalized risk-off tone across US commodities, particularly most on the grain side, given some positive signals from the Ukrainian and Russian war front,” said Valentin Olah, cotton risk management consultant at StoneX Group.
“This correction could prove temporary in cotton as there is still a long way to go before the mills complete their on-call commitments. Also, the demand for US cotton continues to be strong.”
Moscow has decided to drastically cut its military activity around Kyiv and Chernihiv in Ukraine, one of its deputy defence ministers said after talks between Russian and Ukrainian negotiating teams in Istanbul.
Signs of progress in peace talks sent oil prices $6 lower, making substitute polyester less expensive.
Chicago wheat dropped by more than 7% on hopes of a ceasefire in a Russia-Ukraine conflict that has disrupted massive grain exports through the Black Sea region.
“Domestically, there remains no rain in sight for the West Texas region while the Midsouth and the southeastern states are expected to see significant rainfall later this week,” Louis Rose of Tennessee-based Rose Commodity Group said in a note.
Severe drought covering key cotton growing areas such as Texas and robust demand for US cotton have boosted prices to their highest levels since July 2011.
Total futures market volume fell by 35,559 to 27,273 lots. Data showed total open interest fell 5,608 to 228,317 contracts in the previous session. The Spot Rate remained unchanged at Rs 20,000 per maund. Polyester Fiber was available at Rs 288 per kg.
Copyright Business Recorder, 2022
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