LAHORE: The spot rate remained unchanged. The market remained steady on Saturday and the trading volume remained satisfactory.
Cotton Analyst Nasseem Usman while talking to Business Recorder said that price of Punjab’s Phutti attracted per 40 kilograms prices from Rs 6000 to Rs 8500. Cotton of Sindh was traded from Rs 15,500 to Rs 20,000 per maund; Punjab’s cotton was traded from Rs 16,500 to Rs 20,000 per maund.
He told that 1000 bales of Dherki, 1000 bales of Ghotki were sold at Rs 19,600 per maund, 1000 bales of Rahim Yar Khan were sold at Rs 19,500 per maund, 200 bales of Donga Bonga were sold at Rs 19,200 per maund, 200 bales of Mianwali were sold at Rs 19,000 per maund, 400 bales of Chicawatni were sold at Rs 18,700 per maund and 1000 bales of Faqeer Wali were sold at Rs 8150 per maund.
ICE cotton futures rose over 1.5% on Friday and were set for their sixth straight weekly rise, helped by strong demand and a cut in the forecast for U.S. output and inventories in the latest monthly federal supply and demand report.
The cotton contract for March was up 1.96 cents, or 1.7%, at 118.80 cents per pound by 12:49 p.m. ET (1749 GMT). It traded within a range of 116.26 and 118.9 cents a lb.
The contract has gained nearly 3% so far this week.
“It has been a bullish week for the cotton market, based on revised WASDE balance sheets and strengthening U.S. export sales,” said Louis Rose of Tennessee-based Rose Commodity Group.
On Thursday, the U.S. Department of Agriculture’s (USDA)weekly export sales report showed net sales of 401,000 running bales of cotton for 2021/2022, up 85% from the prior four-week average, with China being the top-buyer.
Earlier this week, the USDA in its January World Agricultural Supply and Demand Estimates (WASDE) lowered U.S. production and ending stocks estimates for the 2021/22 crop year.
“Higher crude oil prices also offering support. Cotton market is in an uptrend, we’re could probably see prices going above 120 cents, so things are looking pretty positive,” said Jack Scoville, vice president at Chicago-based Price Futures Group.
Oil prices rose to a two-and-a-half month high, while the dollar was heading for its worst week in eight months. Higher oil prices make polyester, a substitute for cotton, more expensive.
Total futures market volume fell by 17,529 to 12,925 lots. Data showed total open interest gained 407 to 248,032 contracts in the previous session.
The Spot Rate remained unchanged at Rs 19,000 per maund. Polyester Fiber was at Rs 257 per kg.
Copyright Business Recorder, 2022
Comments
Comments are closed.