LAHORE: The Spot Rate Committee of the Karachi Cotton Association on Thursday decreased the spot rate by Rs 100 per maund and was closed at Rs 20,000 per maund. The local cotton market remained bearish while 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 9000. Cotton of Sindh was traded from Rs 18000 to Rs 20,000 per maund, Punjab’s cotton was traded from Rs 18000 to Rs 20,000 per maund. He also told that 400 bales of Fort Abbas were sold at Rs 19200 per maund and 400 bales of Pano Aqil were sold at Rs 21500 per maund. He also told that 2500 bales of Rahim Yar Khan were sold at Rs 20,000 per maund.
Naseem Usman told that Russia is one of the world’s largest oil & gas producers with a capacity of about 11.2 million barrels per day & more than 60% of its energy exports going to European countries in 2019.
Any disruption of oil flows from the region would send Brent and WTI prices skyrocketing higher far above $100. Brent crude rose $2.04, or 2.2%, to settle at $96.48 a barrel, after touching its highest since September 2014 at $96.78.
In Pakistan fuel prices will also increase by 8 to 10 rupee per litre due to increase in international prices from $92 barrel to $96, plus Pakistani will get double hit due to expensive dollar rate in Pakistan.
Pakistan will also take a direct financial hit from Russia war as the bulk of its wheat imports are from Ukraine. Islamabad received 39% of its total imported wheat from Kyiv in the last fiscal year.
Any disruption in wheat imports will result in higher food prices in addition to higher energy price. Power producers have started stockpiling coal given the likelihood of gas disruptions to the European Union, This has resulted in a rally in coal prices, with Richards Bay hovering at $196 per tonne, up 43% from the start of this year.
Short-term rally in crude oil, liquefied natural gas (LNG) and coal prices will further exacerbate the country’s current account balance.
The Spot Rate Committee of the Karachi Cotton Association on Thursday decreased the spot rate by Rs 100 per maund and was closed at Rs 20,000 per maund. Polyester Fiber was available at Rs 268 per kg.
Copyright Business Recorder, 2022
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