Bullish trend witnessed on cotton market

KARACHI: Bullish trend was witnessed on the local cotton market on Wednesday.

Market sources told that quality of Phutti was affected due to the monsoon rains. Picking may also be affected due to rains.

Sources also told that the sowing area of cotton has decreased by 20 percent. The major reason for the decrease in the production of cotton is non-availability of good quality seeds and failure of concerned departments to control pest pressure.

Cotton Analyst Naseem Usman told that the Federal Board of Revenue on Tuesday directed field formations to provide list of income tax refund cases of Rs 50 million by August 16th for immediate issuance of pending refunds under the prime minister package.

Meanwhile Federal Minister for National Food Security and Research Syed Fakhar Imam told the participants of the meeting that farmers are shifting from cotton to other crops due to low prices and to address over all imbalances in cotton industry, effective policy initiatives need to be under taken.

Naseem also told that ICE cotton futures climbed more than one percent on Tuesday after a federal report highlighted low crop quality in major US growing regions, while anticipation of higher imports from China lent further support.

Naseem Usman told that 600 bales of Shahdadpur were sold at Rs 83250, 800 bales of Chichawatni were sold in between Rs 8550 to Rs 8575, 400 bales of Burewala, 200 bales of Mongi Bangla were sold at RS 8550, 200 bales of Samundri were sold at Rs 8500, 400 bales of Kassowal were sold at Rs 8550 and 200 bales of Pir Mehal was sold at Rs 8525.

He told that rate of cotton in Sindh was in between Rs 8275 to Rs 8350.The rate of cotton in Punjab is in between Rs 8550 to Rs 8600. He also told that Phutti of Sindh was sold in between Rs 3300 to Rs 3800 per 40 kg. The rate of Phutti in Punjab is in between Rs 3700 to Rs 4000 per 40 kg.

The rate of Banola in Sindh was in between Rs 1500 to Rs 1550 while the price of Banola in Punjab was in between Rs 1650 to Rs 1750.

The Spot Rate remained unchanged at Rs 8300 per maund. The polyester fiber was available at Rs 155 per kg.

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