LAHORE: The Spot Rate Committee of the Karachi Cotton Association (KCA) on Wednesday increased the spot rate by Rs 100 per maund and closed it at Rs 19100 per maund. The market remained bullish 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 7000 to Rs 8000. 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 500 bales of cotton were sold at Rs 20,000 bales of cotton, 1400 bales of Rahim Yar Khan were sold at Rs 19600 per maund, 1400 bales of Chichawatni were sold at Rs 18700 to Rs 19250 per maund, 400 bales of Jalalpur were sold at Rs 19200 per maund, 200 bales of Fort Abbas were sold at Rs 19200 per maund, 1000 bales of Khan Pur were sold at Rs 19100 per maund, 200 bales of Yazman Mandi were sold at Rs 18000 per maund and 400 bales of Fort Abbas were sold at Rs 17600 per maund.
Textile and clothing exports grew 26 per cent year-on-year to $9.38 billion in the first half of this fiscal year, mainly on the back of a massive depreciation in the rupee’s value and a steady rise in global demand.
The year-on-year growth in December was recorded at 15.89pc, data released by the Pakistan Bureau of Statistics (PBS) showed on Monday.
The government has yet to announce the much-awaited textile and apparel policy pending for the last few years. Several drafts have been presented before the Economic Coordination Committee, but the policy has yet to be approved.
In the budget 2021-22, the government drastically reduced duty and taxes on the imports of several hundred raw materials to bring down the input cost of exportable products. Liquidity issues were also resolved to a considerable extent by a timely release of refunds and the payment of cash subsidies.
Data showed that ready-made garment exports jumped 22.93pc in value and but the quantity data was not available for the period during July-December, while the exports of knitwear edged up 35.21pc in value but dipped 0.73pc in quantity. Bedwear exports grew 19.04pc in value and 20.24pc in quantity.
Towel exports were up by 17.54pc in value and 7.15pc in quantity, whereas those of cotton cloth rose by 21.35pc in value and 12pc in quantity.
Among primary commodities, cotton yarn exports surged 52.33pc and those of yarn made from material other than cotton by 110pc. The exports of made-up articles — excluding towels — rose by 11.36pc, while those of tents, canvas and tarpaulin dipped by 9.18pc during the period under review.
The export of raw cotton jumped 197pc to $1.76m during the six months compared to last year.
The import of textile machinery jumped 88.24pc in July-December, reflecting expansion or modernisation in the textile industry.
To bridge the shortfall in the domestic sector, the industry imported 377,573 tonnes of raw cotton in July-December compared to 331,583 tonnes a year ago, an increase of 13.88pc.
Similarly, the import of synthetic fibre dropped 10.32pc as the industry imported 216,513 tonnes this year compared to 241,429 tonnes. The import of synthetic and artificial silk yarn fell 5.30pc to 199,975 tonnes from 211,160 tonnes in the year-ago period.
The import of worn clothing recorded a growth of 76pc to 504,915 tonnes from 286,848 tonnes last year.
During the six-month period, the country’s overall exports posted a year-on-year growth of around 24.91pc to reach $15.13bn from $12.11bn in the same period last year.
ICE cotton futures rose more than 1% on Tuesday to their highest in two months, driven by an outlook for robust demand, with a rally in the oil market also bolstering appeal for the natural fiber.
The most active first month contract on ICE futures for March was up 0.77 cents, or 0.6%, at 120.47 cents per pound, by 12:35 p.m. ET (1735 GMT). It hit its highest since Nov. 17 at 121.37 cents earlier in the session.
“Cotton market continues to adhere to its bullish trend. Demand for U.S. cotton is still very robust, and there is also support coming from the energy market,” said Keith Brown, principal at Keith Brown and Co in Georgia.
Oil prices climbed to their highest since 2014 as possible supply disruption after attacks in the Mideast Gulf added to an already tight supply outlook.
Higher oil prices make polyester, a substitute for cotton, more expensive.
Investors now await the US Department of Agriculture’s (USDA) weekly export sales report due on Thursday.
Additionally, “the possibility of rising interest rates is seeing a retreat of investment money out of stock market and into cheaper commodities,” added Brown.
The US Federal Reserve meets next week and likely will signal that it will raise interest rates in March for the first time since the start of the pandemic.
Wall Street’s main indexes fell as big technology stocks were slammed by rising Treasury yields.
Total futures market volume fell by 3,080 to 21,158 lots. Data showed total open interest fell 51 to 249,119 contracts in the previous session.
The Spot Rate Committee of the Karachi Cotton Association on Wednesday increased the spot rate by Rs 100 per maund and closed it at Rs 19100 per maund. Polyester fiber was available at Rs 260 per kg.
Copyright Business Recorder, 2022
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