LAHORE: The local cotton market on Friday remained steady while the trading volume low.
The Spot Rate remained unchanged. Cotton Analyst Nasseem Usman while talking to Business Recorder said that yesterday the trading volume improved because of selling of cotton by an international organization.
300 bales of Mir Pur Mathelo, 400 bales of Dherki, 300 bales of Ghotki and 400 bales of Panu Aqil were sold at Rs 21300 per maund on credit.
ICE cotton futures eased on Thursday, as a stronger dollar overshadowed support from a federal report showing a slight uptick in weekly exports.
The most active May cotton contract on ICE futures fell 0.20 cent, or 0.2%, to 117.27 cents per lb, at 11:15 a.m. ET. Prices traded within a range of 116.86 and 118.47 cents a lb.
The U.S. Department of Agriculture’s weekly export sales report showed net sales of 354,200 running bales of cotton for 2021/2022, up 2% from the previous week and 51% from the prior four-week average.
“The market was expecting good numbers, which we had. But it looks like we’re in a range bound situation here,” said Jim Nunn, owner of Tennessee-based cotton brokerage Nunn Cotton.
The dollar index rose 0.4% against its rivals, making cotton more expensive for overseas buyers. The cotton market also took cues from a dip on Wall Street as elevated inflation readings cemented interest rate hike bets.
“We’re seeing a good bit of mill fixations remaining. Also, due to rising fuel and fertilizer prices, farmers may put a cheaper soybean crop in, and then, cotton, which might lead to decline in acreage for cotton,” Nunn said.
Meanwhile, Brazil’s 2021/2022 cotton crop estimated was up nearly 20% from the previous season, according to Brazilian statistics agency Conab.
According to the report titled. Textile Chemicals Market Global Forecast to 2026, the global textile chemicals market is projected to reach $33.1 billion by 2026, growing at a CAGR of 4.6 per cent from 2021 to 2026. The driving factor for the market is growing demand for technical textiles. Also growing adoption of low VOC and biodegradable materials for textile manufacturing is expected to provide lucrative opportunities for the growth of textile chemicals.
Low production cost in these countries and huge installed textile production capacity in countries such as China has further attracted many international textile players in the region. This is expected to drive the demand for textile chemicals in the region.
Naseem Usman also told that China seems to be bearing the brunt of the ongoing Ukraine –Russia war as its share of textile and apparel exports to both countries dwindled to 2.5 per cent to total $8.2 billion in 2021.
Meanwhile, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Mohammad Jashim Uddin recently urged garment and textile entrepreneurs to diversify their investments and brand Bangladesh in a new way. Most entrepreneurs are interested in investing in cotton-based garments and the spinning sector, but the demand for man-made fibre clothing is rising across the world, he said.
Jashim Uddin made the call at the first meeting of the standing committee on readymade garments (RMG), knitwear and sweaters at the FBCCI office.
Exporters are gradually losing the advantage of cheap power, energy and labour, he said.
The Spot Rate remained unchanged at Rs 20,000 per maund. Polyester Fiber was available at Rs 280 per kg.
Copyright Business Recorder, 2022