Single deal reported on cotton market

LAHORE: The market remained dull on Tuesday. The trading volume remained low. Cotton Analyst Naseem Usman told that fluctuation was observed in international cotton market. He also told that the rate of cotton in Punjab and Sindh is in between Rs 18000 to Rs 21,000 per maund. He also told that 100 bales of Lodhran were sold at Rs 22800 (condition) per maund.

Pakistan’s textile and garment exports grew by 25.43 per cent Y-o-Y in value to $14.242 billion in the first nine months of fiscal 2021-22, as per the data from Pakistan Bureau of Statistics.

Knitwear exports by the country surged by 34.12 per cent Y-o-Y to $3.729 billion during the nine-month period, while exports of non-knit readymade garments increased by 26.24 per cent to $2.863 billion.

Bedwear exports increased by 19.33 per cent to $2.448 billion during the nine-month period

Pakistan’s cotton yarn exports increased by 25.97 per cent to $908.487 million in July-March 2021-22, as against exports of $721.216 million made during the corresponding period of 2020-21. Exports of cotton fabric also rose by 26.51 per cent and were valued at $1.795 billion during the period under review.

On the other hand, synthetic fibre imports surged by 27.51 per cent year-on-year to $562.281 million, while imports of synthetic and artificial silk yarn rose 30.10 per cent to $650.219 million during July-March 2021-22.

ICE cotton futures stalled after rising as much as 3% in choppy trading on Monday, as a sharp retreat in the past couple of sessions prompted some to buy the natural fibre. Cotton contracts for July were unchanged at 143.61 cents per lb by 12:31 p.m. ET (1631 GMT) while earlier rising 3%. Prices traded within a range of 142.63 to 148.17 cents a lb.

In the previous session, prices dipped 3.4%, while on Thursday. They were down 3.8% for the day.

“Market has been trading in light volumes, one large buy or sell within the market is able to push prices pretty hard. So, that seems to be the case again,” said Bailey Thomen, cotton risk management associate at StoneX Group, in reference to cotton’s wide moves in the session.

Some of the initial rebound could have been driven by “some opportunistic buying coming in, to some degree,” Thomen added.

The Spot Rate remained unchanged at Rs 21000 per maund. Polyester Fiber was available at Rs 292 per kg.

Copyright Business Recorder, 2022