LAHORE: The Spot Rate Committee of the Karachi Cotton Association (KCA) on Friday decreased the spot rate by Rs 500 per maund and closed it at Rs 16700 per maund.
Cotton Analyst Naseem Usman told Business Recorder that spot rate witnessed a decreased of Rs 2100 per maund in the last four days. The local cotton market remained easy on and the trading volume remained satisfactory.
He also told that the rate of cotton in Sindh is in between Rs 16,500 to Rs 16,700 per maund.
The rate of cotton in Punjab is in between Rs 16800 to Rs 17200 per maund. The rate of Phutti in Sindh is in between Rs 6500 to Rs 7000 per 40 Kg. The rate of Phutti in Punjab is in between Rs 6500 to Rs 7000 per 40 Kg.
The rate of Phutti in Balochistan is in between Rs 6800 to Rs 7300 per 40 Kg.
3000 bales of Tando Adam, 600 bales of Mir Pur Khas were sold at Rs 16500 to Rs 17000 per maund, 800 bales of Sanghar were sold at Rs 16700 to Rs 18000 per maund, 2000 bales of Shahdad Pur were sold at Rs 16800 to Rs 17000 per maund, 400 bales of Khadro were sold at Rs 16800 to Rs 17000 per maund, 200 bales of Shah Pur Chakar were sold at Rs 16700 to Rs 16800 per maund, 600 bales of Hala were sold at Rs 16800 to Rs 17000 per maund, 800 bales of Hyderabad were sold at Rs 16500 to Rs 16800 per maund, 600 bales of Chichawatni were sold at Rs 17300 to 1700 to Rs 17500 per maund, 400 bales of Burewala were sold at Rs 17200 to Rs 17500 per maund, 200 bales of Bahwalpur, 200 bales of Layyah, 1800 bales of Khanewal were sold at Rs 17000 per maund, 400 bales of Mongi Bangla were sold at Rs 17400 to Rs 17500 per maund, 200 bales of Haroonabad were sold at Rs 17300 per maund and 200 bales of Mian Channu were sold at Rs 17500 per maund.
The textile industry will come to a halt from July 1 to 8 due to the prolonged suspension of gas supply.
The suspension of gas supply will primarily affect the industries in Punjab as 70 per cent of textile mills are located there. The shortage of gas supply has already reduced the textile production up to 30 per cent, whereas, the latest suspension will reduce their output up to 50 per cent.
The interrupted gas supply to the industries has been affecting the exports that will impact the achievement of $26 billion target for the next fiscal year besides increasing unemployment.
Sources told ARY News that the Sui Northern Gas Pipelines Limited (SNGPL) apprised the textile mills about the gas supply suspension receiving gas supplies from the captive power plants.
Sources added that the decision for suspending the gas supply was taken to continue uninterrupted supplies to the power and fertiliser sectors.
All Pakistan Textile Mills Association (APTMA) warned of major economic loss to the country due to gas suspension and demanded the authorities to resume the supplies.
ICE cotton will likely record its worst month in more than a decade over recession fears, even as futures rose more than 1% on Thursday over production concerns and bargain hunting by mills.
The most-active December contract on ICE Futures was up 0.67 cents, or about 0.69%, at 97.48 cents per lb as of 03:09 p.m. ET. But the third-month contract was headed for a more than 19% drop this month, its worst showing since 2012.
The contract also registered its first quarterly drop in nine, down over 16% so far. “The market continues to climb higher given the really bad conditions in the US crop,” with supply chain issues also adding to the uptick, said Valentin Olah, cotton risk management consultant at StoneX Group.
Data from the United States Department of Agriculture (USDA) showed that as of June 19, 40% of the cotton acreage was rated in good to excellent condition, down from 52% at the same time last year.
Also, “the mills, and the buyers are trying to be proactive in capturing the discounted prices before they go back to $1.00,” Olah added.
A dip in the dollar on Thursday also made cotton cheaper for overseas buyers. Cotton futures have bounced back over the past three sessions, mostly on bargain hunting, after marking its worst week in over a decade as recession concerns soured the demand outlook for the commodity.
The recent sharp volatility has prompted exchange operator ICE to announce multiple revisions of its daily trading limit.
Investors also took stock of week export sales data from the USDA, showing net sales of 48,100 running bales for 2021/2022, up from the previous week but down 71% from the prior 4-week average.
The Spot Rate Committee of the Karachi Cotton Association on Friday decreased the spot rate by Rs 500 per maund and closed it at Rs 16700 per maund. The Polyester Fiber was available at Rs 325 per kg.
Copyright Business Recorder, 2022
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