KARACHI: The local market remained bearish on Saturday. Market sources told that trading volume remained low due to the fluctuation in the rate of dollar in the local market while the dollar is strengthening in international market.
Sources told that reason behind bearish trend worldwide is increasing tension between China and America on economic front.
Cotton Analyst Naseem Usman told that ICE cotton futures rose 3% on Friday, with mills taking advantage of a steep fall in the previous session to buy back some of the natural fibre as demand prospects remain strong amid steady global economic recovery.
Cotton contracts for May rose 2.35 cents, or 3% to 80.79 cents per lb by 10:25 a.m. EDT (1425 GMT). It traded within a range of 77.12 and 80.97 cents a lb.
However, the contract is down 4.7% so far this week, its biggest weekly percentage fall since March 2020.
"Certainly some mills might be buying and off course under 80 cents we may have seen some foreign bushiness done last night. Also, the dollar has gone down a little today," said Keith Brown, principal at cotton brokers Keith Brown and Co in Georgia
"The fundamentals of cotton are basically intact, the speculators were heavily long and they got liquidated yesterday." Cotton prices fell nearly 5% and traded limit down on Thursday, pressured by a weak export sales data and a stronger dollar.
Meanwhile, Senior Vice Chairman of Pakistan Yarn Merchants Association (PYMA), Hanif Lakhany has urged Abdul Razak Dawood, Adviser on Trade & Investment to PM to fulfil his promise for removal of additional customs duty and regulatory duty (ACD & RD) on synthetic yarns, which is the raw material of the textile industry. He said that the government should play a role in providing raw materials to the textile industry at reasonable prices, otherwise Prime Minister Imran Khan's dream of industrial & economic development will never come true.
Hanif Lakhani appealed to Trade and Investment Adviser Abdul Razak Dawood, saying that last year the government had announced the abolition of additional customs duty and regulation on industrial raw materials, but ACD & RD on synthetic yarns were not abolished, so immediately remove these barriers for reducing the production cost and also justify the cascading system of polyester value chain. But even after a long wait, the prime minister's adviser has not kept his promise, which is a matter of grave concern to textile exporters and importers.
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 11,900 per maund. The Polyester Fiber was available at Rs 220 per Kg.
Copyright Business Recorder, 2021
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