LAHORE: The Spot Rate Committee of the Karachi Cotton Association (KCA) on Wednesday increased the spot rate by Rs 200 per maund and closed it at Rs 19700 per maund. The cotton market remained bullish and the trading volume remained low.
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 8600. 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 1200 bales of Rahim Yar Khan were sold at Rs 19500 per maund.
He also told that 400 bales of MirPur Mathelo, 1000 bales of Ghotki, 2000 bales of Rahim Yar Khan, 1752 bales of Dera Ghazi Khan and 400 bales of Khan Pur were sold at Rs 20,000 per maund.
Naseem Usman further told that tt has been unfortunate that, Pakistan cotton crop is continuously going towards decline since last 4-5 years mainly due to the rising greed among growers, middleman, ginners and to some extent mills, Pakistan among the few cotton producing countries where cotton is handpicked but still it is the most contaminated cotton with highest percent of trash (8-10%), and moisture around 9-12 percent.
He also told that people related to the cotton trade have ruined our cotton adding that leading cotton-producing countries have adopted modern farm practices, certified seeds, un-ulderated fertilizers and pesticides, world cotton trade is around 43 million bales and our share in it is Zero, USA, Brazil, India, West African countries, Australia and other smaller cotton-producing countries are in the market just because their cotton is acceptable to most of the spinning mills around the globe and we just make statements at every level and on ground did nothing noteworthy, we should be first sincere with ourselves, our country and than with our trade to regain our past glory of leading cotton producer and exporter, may Allah gives us wisdom and sincere deeds to success in this fast-changing world
Earlier, during a meeting with Governor Sindh Imran Ismail while talking to the delegation of All Pakistan Textile Mills Association said that government is aware of the issues faced by the industrialists. The delegation discussed in detail the issue of gas curtailment with the governor.
Moreover, industrialists of Karachi protested against the gas curtailment outside the office of the Sui Southern Gas Company. They gave the ultimatum that government should restore gas supply with in 48 hours.
ICE cotton futures fell more than 1% on Tuesday as index funds rolled over their positions, while some investors locked in profits after a rally that saw prices hit their highest levels in over a decade.
The front-month contract on ICE futures for March was down 2.00 cents, or 1.6%, at 125.57 cents per lb by 13:14 ET.
“The market is seeing a lot of roll-over activity happening, moving from the front-month out into the additional months,” said Bailey Thomen, cotton risk management associate at StoneX Group.
“There is also some selling pressure due to profit-taking on the March contract as prices hit new highs. Demand for US cotton continues to be pretty strong, it’s the shipping that is the biggest issue,” she added.
Cotton prices rose to their highest level since mid-2011 at 129.37 cents earlier in the day, mainly driven by strong demand for natural fiber, especially from Asian countries. Market participants now await the US Department of Agriculture’s weekly export sales report due on Thursday.
The Spot Rate Committee of the Karachi Cotton Association on Wednesday increased the spot rate by Rs 200 per maund and closed it at Rs 19700 per maund. Polyester Fiber was available at Rs 263 per kg.
Copyright Business Recorder, 2022
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