LAHORE: The Spot Rate Committee of the Karachi Cotton Association on Friday increased the spot rate by Rs 200 per maund and closed it at Rs 18000 per maund. The market remained bullish and the trading volume remained low.
Cotton analyst Naseem Usman while talking to Business Recorder told that cotton will not be available in the Month of January. New crop of cotton will arrive in June. He also said that prices of cotton and cotton related products like yarn and Banola increased by 60 % during 2021.
He also told that that price of Punjab’s Phutti attracted per 40 kilograms prices from Rs 6000 to Rs 8000. Cotton of Sindh was traded from Rs 15000 to Rs 19000 per maund, Punjab’s cotton was traded from Rs 16000 to Rs 18500 per maund.
As many as 400 bales of Mir Pur Matheo were sold at Rs 19000 per maund, 400 bales of Sarkand were sold at Rs 16500 per maund, 400 bales of Sadiqabad were sold at Rs 18300 per maund, 200 bales of Chichawatni were sold at Rs 17400 per maund and 860 bales of Faqeer Wali were sold at Rs 16600 per maund.
ICE cotton futures rose to a more than one-month high in thin year-end trading on Thursday, on expectations of strong demand for the natural fiber, while growing appetite for riskier assets also seeped into the U.S. cotton market.
The cotton contract for March was up 1.14 cent, or 1%, at 114.13 cents per lb by 13:06 ET (1806 GMT). Prices rose to their highest level since Nov. 26 at 115.33 cents.
“Cotton is seeing strong upward move as there are high expectations in the market that sales next week are going to be huge and stock market is also up,” said Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi.
The S&P 500 and the Dow hit all-time highs as a dip in weekly jobless claims allayed fears over the economic damage from a rampant surge in COVID-19 infections in the United States.
The US Department of Agriculture (USDA) weekly export sales report showed net sales of 192,200 running bales, down 21% from the previous week and 40% from the prior 4-week average, with China being the top buyer.
Certificated cotton stocks deliverable as of Dec. 29 totalled 617 480-lb bales, unchanged from 617 in the previous session.
The Spot Rate Committee of the Karachi Cotton Association on Friday increased the spot rate by Rs 200 per maund and closed it at Rs 18000 per maund. The Polyester Fiber was available at Rs 245 per kg.
Copyright Business Recorder, 2022