LAHORE: The Spot Rate Committee of the Karachi Cotton Association on Friday increased the spot rate by Rs 500 per maund and closed it at Rs 19000 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 6000 to Rs 8500. Cotton of Sindh was traded from Rs 15000 to Rs 19000 per maund, Punjab’s cotton was traded from Rs 16000 to Rs 18500 per maund.
He told that 1000 bales of Dherki, 1000 bales of Ghotki, 400 bales of Sarhad, 1000 bales of Sadiqabad were sold at Rs 19000 per maund, 5945 bales of Rahim Yar Khan were sold at Rs 18500 to Rs 20,000 per maund, 600 bales of Bagho Bahar, 200 bales of Liaquat Pur, 200 bales of Khan Pur were sold at Rs 18800 per maund.
ICE cotton futures rose more than 2% on Wednesday after the US Department of Agriculture (USDA) lowered US production and ending stocks estimates for the 2021/22 crop year, while a weaker dollar added to the upbeat mood.
Cotton contracts for March was up 2.70 cents, or 2.4%, at 118.72 cents per lb, by 01:40 p.m. ET, its highest since Nov. 24.
“The USDA surprisingly cut the US crop, which ultimately brought the ending stocks down. They also lowered exports, but overall this is a friendly report to the market,” said Keith Brown, principal at Keith Brown and Co in Georgia.
In its January World Agricultural Supply and Demand Estimates (WASDE) report, the USDA projected US production at 17.62 million bales for the 2021/22 crop year, about 660,000 bales lower than the previous month, bringing its ending stock estimate 200,000 bales lower to 3.20 million bales.
The USDA also cut its global output estimate by about 610,000 bales to 120.96 million bales, bringing ending stocks forecast to 85.01 million bales from 85.73 million bales last month.
However, the agency trimmed US exports estimate by 500,000 bales to 15.0 million bales, citing lower US crop and continuing logistical issues.
“If we can start to see some improvement in the month of January on the logistics issues, we may not see strong cancellations,” Brown said.
Further lifting cotton’s appeal, the dollar slipped to a fresh two-month low against its rivals, while oil prices hit two-month highs on tight supply as crude inventories in the United States dropped.
Total futures market volume rose by 4,247 to 27,824 lots. Data showed total open interest fell 136 to 244,451 contracts in the previous session.
The Spot Rate Committee of the Karachi Cotton Association on Friday increased the spot rate by Rs 500 per maund and closed it at Rs 19000 per maund. Polyester Fiber was at Rs 257 per kg.
Copyright Business Recorder, 2022