Stable trend on cotton market amid moderate trading

KARACHI: The local cotton market was firm on Saturday and trading volume remained satisfactory.

The Spot Rate remained unchanged at Rs 14100 per maund. The Polyester Fiber was available at Rs 225 per kg.

Cotton Analyst Naseem Usman told Business Recorder that after ten years international cotton market crossed 100 cent. After the reports of cotton crop damage in India, China started to buy cotton from America.

The Prices of textiles and garments made in China are likely to rise by 30 to 40 per cent in the coming weeks on account of planned shut down in the industrial provinces of Jiangsu, Zhejiang and Guandong. The shut downs are due to governments efforts to reduce carbon emissions and shortage of electricity production owing to short supply of coal from Australia.

The rate of cotton in Sindh is in between Rs 12700 to Rs 14000 per maund and the rate of cotton in Punjab is in between Rs 13000 to Rs 14200 per maund.

The rate of the new crop of Phutti in Sindh was in between Rs 4500 to Rs 5900 per 40 kg. The rate of Phutti in Punjab is in between Rs 5500 to Rs 6200 per 40 kg. The rate of Banola in Sindh is in between Rs 1400 to Rs 1800 per maund. The rate of Banola in Punjab is in between Rs 1600 to Rs 1850 per maund. The rate of cotton in Balochistan is in between Rs 13700- 14200 per maund. The rate of Phutti in Balochistan is Rs 5800- 6800 per maund.

800 bales of Tando Adam were sold at Rs 12400 to Rs 13200 per maund, 400 bales of Mir Pur Khas, 400 bales of Sanghar was sold at Rs 12500 per maund, 400 bales of Ghupchani were sold at Rs 13000 per maund, 1000 bales of Shahdad Pur were sold at Rs 12500 to Rs 13400 per maund, 400 bales of Khair Pur were sold at Rs 13900 to Rs 14100 per maund, 1000 bales of Rohri were sold at Rs 14000 to Rs 14100 per maund, 600 bales of Deherki, 1000 bales of Ghotki, 200 bales of Sarhad, 200 bales of Khan Pur, 200 bales of Pano Aqil were sold at Rs14500 per maund, 100 bales of Bahawalpur were sold at RS 13285 per maund, 1200 bales of Ali Pur were sold at Rs 13900 per maund, 1000 bales of Haroonabad, 1600 bales of Faqeer Wali were sold at RS 14000 per maund, 2000 bales of Fort Abbas were sold at Rs 14000 per maund, 3000 bales of Yazman Mandi were sold at Rs 14000 to Rs 14075 per maund, 200 bales of Dharan Wala, 100 bales of Donga Bonga, 1000 bales of Hasil Pur , 800 bales of Layyah , 200 bales of Chishtian, 400 bales of Shujabad were sold at Rs 14000 per maund, 400 bales of Ghazi Ghat were sold at Rs 14100 to Rs 14250 per maund, 400 bales of Mian Wali were sold at Rs 14200 per maund,100 bales of Khanewal were sold at Rs 14400 per maund, 400 bales of Rahim Yar Khan were sold at Rs 14500 per maund.

The country is unlikely to achieve the agriculture growth target of 3.5 percent set for 2021-22, after revising downward the cotton production target from 10.5 million bales to 8.46 million bales.

A senior official of the Ministry of National Food Security and Research (MNFS&R) told Business Recorder that cotton production target was revised downward, after missing the sowing target by 13.4 percent due to which the country may not achieve agriculture growth target set for the current fiscal year.

Cotton crop stands vital in agriculture as well as value added textile sector and contributes around 0.6 percent to GDP and 3.1 percent of the value added in agriculture, the official added.

ICE cotton futures eased on Friday, but were headed towards their biggest weekly percentage rise since July 2016, bolstered by strong Chinese buying and concerns over a supply crunch due to crop damage in major producer India.

The cotton contract for December fell 0.62 cent, or 0.59%, at 105.18 cents per lb by 02:03 p.m. EST (1803 GMT).

Total futures market volume fell by 5,570 to 39,331 lots. Data showed total open interest gained 2,602 to 291,964 contracts in the previous session.

Copyright Business Recorder, 2021