KARACHI: The local cotton market remained satisfactory on Monday. Market sources told that trading volume was also satisfactory. Cotton Analyst Naseem Usman told that according to Indian media Indo-Pak cease fire accord brings ray of hope for the resumption of trade via Wahga-Attari border.
India’s cotton exports likely to rise 50 percent this year to 75 lakh bales this year. Cotton exports from India are prone to rise 50 per cent this 12 months to 75 lakh bales within the 2020-21 crop 12 months starting October with revival in international demand from China and Bangladesh within the final one month, mentioned commerce our bodies. The exports can see an additional increase if Pakistan opens its marketplace for Indian cotton, mentioned Mahesh Sharda, president of Indian Cotton Affiliation.
Commerce between the two nations has been suspended since 2019. Indian cotton is the most affordable on this planet in comparison with the US, Brazil, and Australia and therefore there’s a large potential to export, he mentioned.
“Within the final ten days, China alone has ordered over 10 lakh bales (one bale of 170 kg every) with international costs firming up. Additionally, Pakistan which has a shortfall in manufacturing might import cotton and yarn from India if commerce between the 2 nations resumes. These elements can simply lead cotton exports to 70-75 lakh bales,” mentioned Sharda.
In 2018-19, India had exported 42 lakh bales. Nations are commonly shopping for cotton from us as our cotton costs had been 15 per cent cheaper than COTLOOK A index, which represents the worldwide uncooked cotton market value, mentioned Sharda. As much as February finish, India has exported 38 lakh bales of cotton largely to China, Bangladesh and Vietnam and has signed future contracts for 7 lakh bales, mentioned exporter and dealer Dharmendra Jain, companion at DP Cotton. “There’s common export demand and we are able to count on export of 5 lakh bales to Pakistan which may take whole export for this 12 months to 75 lakh bales,” he mentioned Cotton might be exported from the Attari border in Punjab with mills from adjoining states to fulfil the contracts, mentioned Jain.
Cotton costs gained almost 5 per cent in a single month resulting from tight provide and excessive demand from export and mills, mentioned Saurabh Pahade, analysis analyst at Kedia Advisory. Within the final one-year costs have seen a 20 per cent progress. “China’s demand for Indian yarn resumed to pre-Covid ranges throughout November-December 2020. Pakistan might enable cotton import from India by means of land route as prospects of the gradual restoration of bilateral commerce ties,” he mentioned. Within the home market, cotton costs elevated steadily since October from Rs 40,000 per sweet of 356 kg to present value of Rs 47,000 per sweet, mentioned Atul Ganatra, president, Cotton Affiliation of India. “The exports within the first 6 months of the season, starting October have been good, however at this excessive price might not maintain. As much as February we’ve got achieved export shipments round 34 lakh bales and we are able to count on cotton exports in 2020-21 to be near 60 lakh bales,” he mentioned. Ganatra mentioned the Indian cotton costs will transfer in tandem with the worldwide development which was agency resulting from a decease crop with in US.
Mean While, Chairmen of various value-added textile associations on Tuesdaonce again called for abolishment of customs and regulatory duties on import of cotton yarn and imposing ban on the export of cotton yarn of 30 single or below till June 2021 to cover the demand and supply of this basic raw material of textile industry. At the joint press conference here at Pakistan Hosiery Manufacturers and Exporters (PHMA) House with representation of almost all value-added textile sectors, Chairman of Council of Textile Associations Muhammad Zubair Motiwala, and Chief Coordinator of the council and Chairman of Pakistan Apparel Forum M Jawed Bilwani said despite COVID-19 pandemic big export orders from different countries were coming to Pakistan for various value-added textile products. But, they added, short supply of cotton yarn in the local market hindered their production activities and rendered many textile manufacturers unable to meet their export orders. Motiwala and Bilwani, and other value-added textile sectors’ leaders unanimously urged that the government should immediately allow duty-free import of cotton-yarn and impose ban on cotton yarn export like it did in the cases of wheat and sugar shortage in the country. They pointed out that in spite of COVID-19 Pakistan’s textile export remained significantly high over five consecutive months including January 2021. However, they regretted, in February due to short supply of gas to the industries the textile export declined. It was golden opportunity to achieve milestone in exports by ensuring availability of cotton yarn, they said. The top exporters, on this occasion, appreciated government’s decisions to support trade and industry including industrial support package of electricity tariff for general, small and medium units.
ICE cotton futures fell more than 2% on Wednesday, tracking weakness in broader financial markets and as analysts said that the US fibre was facing headwinds from cheaper Indian and African exports. Cotton contracts for May fell 2.45 cent, or 2.7% to 88.54 cents per lb, by 1:22 p.m. ET (1822 GMT). It traded within a range of 88.44 and 91.13 cents a lb. The contract rallied to over 2-1/2-year highs last week but has slipped as much as 7.5% from that peak. “The market has room to move a bit lower because the rally (has) ran into major resistance on the demand side,” said Ed Jernigan, chief executive of Jernigan Global, a cotton textile supply chain manager. Market participants look forward to a weekly export sales report from the US Department of Agriculture (USDA) due on Thursday. The cotton market lacks a positive trigger to push it higher and that is pushing some traders out of the market, said Sid Love, commodity trading adviser at Kansas-based Sid Love Consulting. A dip in Wall Street’s major stock averages and similar moves across grain markets like soybean, corn and wheat further pressured the natural fibre. But, “There is a host of bullish factors working towards cotton and a lot of it has to do with South American weather the same thing that keeps on buoying the grains, should keep us afloat too,” said Louis Barbera, partner and analyst at VLM Commodities Ltd.
Nsaseem told that 200 bales of Khan Pur Mehar were sold at Rs 12200 per maund, 1000 bales of Khan were sold at Rs 12700 to Rs 2900 (Cond) and 700 bales of Faqeer Wali were sold at Rs 12300 per maund. Naseem also told that rate of cotton in Sindh was in between Rs 10,300 to Rs 11500 per maund. The rate of Phutti in Sindh is in between Rs 4500 to Rs 5100 per 40 kg. The rate of cotton in Punjab is at Rs 12500 per maund. The rate of Phutti in Punjab is in between RS 4800 to Rs 6300 per 40 kg. The rate of Banola in Sindh was in between Rs 1600 to Rs 2000 while the price of Banola in Punjab was in between Rs 1800 to Rs 2250. The rate of cotton in Balochistan is Rs 12000 per maund. The rate of Phutti of Dalbadin Balochistan is available at Rs 6300 to Rs 6400 per 40 Kg.
The Spot Rate remained unchanged at Rs 12000 per maund. The rate of Polyester Fibre was increased by Rs 3 and was available at Rs 218 per Kg.
Copyright Business Recorder, 2021
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