The spot rate remains unchanged on the cotton market – Markets


LAHORE: The spot rate was unchanged on Friday. The market remained stable and the volume of transactions remained low.

Cotton analyst Naseem Usman, in conversation with Business Recorder, said the price of Phutti of Sindh traded between 4,500 and 7,600 rupees per 40 kilograms; The Punjabic Phutti drew prices of 40 kilograms from Rs 6,000 to Rs 7,800. Premium cotton was available at Rs 17,500 per maund.

Likewise, Phutti from Balochistan traded between Rs 6,500 for 40 kilograms and Rs 8,200 for 40 kilograms.

Cotton from Sindh was traded from Rs 13,500 to Rs 17,000 per maund, cotton from Punjab from Rs 14,500 to Rs 17,000 per maund and prices for cotton from Balochistan remained at Rs 16,000 to Rs 16,500 per maund.

While the Sindh banola was traded for Rs 1,400-2,300 per maund, the Punjab crop was traded for Rs 1,800-2,400 per maund and the Balochistan banola was traded for Rs 1,700-2,300 per maund. maund, added Naseem Usman.

No less than 800 balls of Rahim Yar Khan were sold between 16,500 and 17,000 Rs per maund and 400 balls of Chichawatni were sold at 17,400 Rs per maund.

1ICE cotton futures rose on Thursday and were on track for a third consecutive weekly gain on the outlook of strong demand for natural fiber as concerns over the Omicron corona virus variant eased.

The cotton contract for March was up 0.57 cents, or 0.5%, to 109.40 cents a pound at 12:39 p.m. ET (17:39 GMT). It traded in a range of 108.21 and 109.45 cents per pound. The contract was on track for a 2% weekly gain.

“Investors seem to have the underlying general feeling that Omicron may not be very tough and that commodity prices will rise as the new year approaches,” said Keith Brown, director of Keith Brown and Co in Georgia.

Major Wall Street indices rose after initial data suggested the Omicron variant of the corona virus was less severe than expected.

Oil prices also extended the gains. Rising oil prices make polyester, a cotton substitute, more expensive.

Meanwhile, the U.S. Department of Agriculture’s weekly export sales report showed net sales of 243,900 current bales for 2021/2022, down 15 percent from the previous week and down 21 % compared to the average of the previous 4 weeks.

“As it was the week before Christmas, sales were pretty decent. Shipments have improved and as the supply chain crisis is resolved the United States will ship more cotton, ”Brown said.

The total volume of the futures market fell from 7,695 to 6,499 lots. The data showed that total open interest won 2,344-232,268 contracts in the previous session.

Meanwhile, Punjab’s Finance Minister Hashim Jawan Bakht assured the All Pakistan Textile Mills Association (APTMA) to pursue the issue of non-gas supply for export-oriented units in Punjab with the government. federal government at all appropriate levels while admitting that it has caused colossal loss and disruption to the textile industry. The Minister met with the APTMA delegation headed by Abdul Rahim Nasir, central president, Hamid Zaman, president of the northern zone, Karman Arshad, senior vice president, Asad Shafi, treasurer, Umar Latif and Raza Baqir, secretary general of the Association. Rahim Nasir informed the Minister of the disconnection of gas supplies to all Punjab-based factories despite the factories agreeing to increase gas tariffs up to $ 9 / MMBTU until March 2022. He said the unavailability of gas has affected production and export. of textile products. He also highlighted the disparity in gas prices between Punjab and other provinces. He added that the upward revision of gas prices from $ 6.5 / MMBTU to $ 9 / MMBTU has further widened the gap in the price difference.

He pointed out that gas prices in Sindh and KPK were $ 4.87 / MMBTU while the price of gas for industry in Punjab has been increased to $ 9 / MMBTU and gas is not at all available even on said high tariff. He added that the gas price of $ 4.05 / MMBTU in Bangladesh and $ 5.19 / MMBTU in India was also much lower than the tariff applicable to the Punjab-based export industry.

The spot rate remained unchanged at Rs 17,400 per maund. Polyester fiber was available at Rs 245 per kg.

Copyright Business Recorder, 2021


About Author

Comments are closed.