Cotton prices firm after PCGA report

KARACHI: The local cotton market on Saturday remained bearish and the volume remained satisfactory.

The Spot Rate remained unchanged at Rs 13250 per maund. The Polyester Fiber was available at Rs 222 per kg.

Cotton Analyst Naseem Usman told Business Recorder that Seed cotton (Phutti) equivalent to over 2.6 million or exactly 26,86,537 bales have reached ginning factories across the country till September 15 registering increase of 159.52 per cent as compared to corresponding period of last year.

According to a fortnightly report of Pakistan Cotton Ginners Association (PCGA) released on Saturday, over 2.4 million or 2,414,000 bales have undergone the ginning process i.e converted into bales. Cotton arrivals in Punjab were recorded at over 0.95 million or 9,59,925 bales registering a surplus of 186.66 pc as compared to corresponding period of last year when arrivals were recorded 3,34,863 bales.

Sindh generated over 1.7 million or 17,26,612 bales registering an increase of 146.54 pc as compared to corresponding period of last year when arrivals were recorded 7,00,331 bales.

Textile mills bought 23,50,505 bales while exporters purchased one thousand bales and Trading Corporation of Pakistan (TCP) didn’t buy during the cotton season 2020-21.

Sanghar district of Sindh topped with cotton arrival figure of 10,01,860 bales followed by Bahawalnagar district of Punjab with 2,32,550 bales.

Total 472 ginning factories were operational in the country including 255 in Punjab. 3,35,032 bales cotton stock was available in ginning factories.

The rate of cotton in Sindh is in between Rs 12300 to Rs 13100 per maund and the rate of cotton in Punjab is in between Rs 13200 to Rs 13400 per maund.

The rate of the new crop of Phutti in Sindh was in between Rs 4500 to Rs 5600 per 40 kg. The rate of Phutti in Punjab is in between Rs 5000 to Rs 5800 per 40 Kg. The rate of Banola in Sindh is in between Rs 1650 to Rs 1700 per maund. The rate of Banola in Punjab is in between Rs 1700 to Rs 17550 per maund. The rate of cotton in Balochistan is in between Rs 13100- 13200 per maund. The rate of Phutti in Balochistan is Rs 6000- 6700 per maund.

3000 bales of Khair Pur were sold at Rs 13200 per maund, 600 bales of Ghotki were sold at Rs 13500 to Rs 13600 per maund, 200 bales of Moro were sold at Rs 13100 per maund, 1600 bales of Saleh Pat were sold at Rs 13300 to Rs 13400 per maund, 800 bales of Tando Adam were sold at Rs 12400 to Rs 12800 per maund, 1000 bales of Shahdad Pur were sold at Rs 12500 to Rs 12900 per maund, 800 bales of Rahim Yar Khan were sold at Rs 13450 to Rs 13500 per maund, 1600 bales of Khair Pur were sold at Rs 13500 to Rs 13550 per maund, 200 bales of Chani Goth were sold at Rs 13350 to Rs 13450 per maund, 600 bales of Layyah were sold at Rs 13435 per maund, 200 bales of Liaquat Pur were sold at Rs 13425 per maund, 400 bales of Khanewal, 400 bales of Bahawalpur, 400 bales of Dunya Pur, 600 bales of Marrot, 200 bales of Mureed Wala, 800 bales of Yazman Mandi were sold at Rs 13400 per maund, 1000 bales of Haroonabad were sold at Rs 13350 to Rs 13400 per maund, 400 bales of Ahmed Pur East were sold at Rs 13350 per maund.

The country’s textile group exports witnessed 28.67 percent growth during the first two months (July-August) of current fiscal year and remained $ 2.933 billion compared to $2.280 billion during the same period of last fiscal year, says the Pakistan Bureau of Statistics (PBS).

The exports and imports data released by the PBS revealed that textile group exports on month-on-month basis witnessed 0.57 percent decline and remained $ 1.462 billion in August 2021 compared to $ 1.471 billion in July 2021.

Textile group exports have witnessed a growth of 45.19 percent on year-on-year basis and remained $ 1.462 billion in August 2021 compared to $ 1.007 billion in August 2020.

Cotton yarn exports registered a growth of 67.97 percent during July-August 2021 and remained at $ 193.389 million compared to $ 115.136 million during the same period of last year and increased by 89.55 percent in August 2021 and remained $ 103.518 million when compared to $ 54.612 million during the same month of last year.

Raw cotton exports witnessed 100 percent decline on month-on-month basis as well as on year-on-year basis.

ICE cotton futures fell to a one-week low on Friday and were on track for their third straight weekly decline, weighed down by a jump in the U.S. dollar.

The cotton contract for December fell 0.30 cent, or 0.3%, to 92.21 cents per lb by 11:43 a.m. ET (1543 GMT). The contract is down 1.3% so far this week. “The dollar is on the rise again. But the demand has been pretty good, issue is merchants don’t have their hands on the crop yet, and cotton at 90 cents is a rich price,” said Rogers Varner, president of Varner Brokerage in Cleveland, Mississippi.

Total futures market volume fell by 8,392 to 11,842 lots. Data showed total open interest fell 724 to 272,662 contracts in the previous session.

Certificated cotton stocks deliverable as of Sept. 15 totalled 63,515 480-lb bales, down from 64,455 in the previous session.

Copyright Business Recorder, 2021