LAHORE: The Spot Rate Committee of the Karachi Cotton Association on Wednesday increased the spot rate by Rs 300 per maund and closed it at Rs 20, 200 per maund.
The local cotton market remained steady and the trading volume remained satisfactory. The rate of Balochi Cotton reached at Rs 20,700 per maund.
Cotton Analyst Nasseem Usman while talking to Business Recorder said that price of Punjab’s Phutti attracted per 40 kilograms prices from Rs 6500 to Rs 8900. Cotton of Sindh was traded from Rs 15500 to Rs 20,000 per maund, Punjab’s cotton was traded from Rs 16500 to Rs 20,000 per maund.
He told that 2000 bales of Ghotki (Baloch) (Trader to Mill) was Rs 20,700 per maund, 2000 bales of DG Khan (Balochi) (Trader to Mill) were sold at Rs 20,700 per maund, 800 bales of Jalal Pur, 800 bales of Bahwalpur were sold at Rs 20,000 per maund, 400 bales of Multan were sold at Rs 19900 per maund, 1600 bales of Rahim Yar Khan (Trader to Mill) were sold at Rs 20250 per maund , 1600 bales of Sadiqbad (Trader to Mill) were sold at Rs 20250 per maund.
ICE cotton futures rose on Tuesday, helped by strong demand for the natural fiber, as market participants awaited a monthly supply-and-demand report from the US Department of Agriculture (USDA).
The cotton contract for March was up 0.56 cent, or 0.5%, at 126.13 cents per lb by 11:50 a.m. ET (1650 GMT). It traded within a range of 125.05 and 126.43 cents a lb.
“We are seeing a pause with some crop numbers coming up tomorrow. The demand for US cotton has been very strong especially from overseas buyers,” said Jon Marcus, president of Lakefront Futures and Options brokerage in Chicago.
Cotton prices rose to their highest level since mid-2011 at 129.37 cents last week, mainly driven by robust demand for the commodity, especially from Asian countries.
All eyes are on the USDA’s monthly World Agricultural and Supply Demand Estimates (WASDE) report due on Wednesday.
“While we (and most other analysts) do not expect major changes vs Jan, USDA does have some adjustments that need to be made to last season’s balance sheet, which might be moderately bearish for old crop cotton,” said Louis Rose of Tennessee-based Rose Commodity Group in a note.
Chicago soybeans edged lower on Tuesday after touching an eight-month high in the previous session.
Meanwhile, the dollar index was up 0.3% against its rivals. A stronger greenback makes cotton more expensive for other currency holders.
The Spot Rate Committee of the Karachi Cotton Association increased the spot rate by Rs 300 per maund and closed it at Rs 20, 200 per maund. Fiber was available at Rs 263 per kg.
Copyright Business Recorder, 2022
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