RECORDER REPORT | August 5, 2020
LAHORE: The Spot Rate Committee of the Karachi Cotton Association on Tuesday has increased the spot rate by Rs 100 per maund and closed it at Rs 8200 per maund.
Market sources told that local cotton market remained stable. Traders were cautious in buying because of the forecast of the rains. The quality of Phutti as well as supply of the Phutti was affected due to the monsoon rains. Another reason of significant decline in the local cotton market is because downward trend was witnessed in the international market also.
Sources also told that sowing area of cotton was decreased by 20 percent. The major reason for the decrease in the production of cotton is availability of good quality seeds and failure of concerned departments to control pest pressure.
Ginners were buying Phutti according to their needs. The picking of cotton was affected due to rains in the different parts of the country. Meanwhile, growers and farmers are fearing a loss in cotton crop owing to expected heavy monsoon rains, high temperature and whitefly attack.
Cotton Analyst Naseem Usman told that cotton cultivation land decreased in Punjab by 18%. During the current season, cotton cultivation in Multan district decreased by 25.72%. According to media reports paddy was cultivated in the cotton belt of South Punjab.
ICE cotton futures rose to a three week peak on Monday after forecasts for hot and dry weather in major cotton growing regions in the United States stoked fears of deteriorating crop conditions. While in a sign of troubled trade relations with China, India’s export of cotton textile products to China has seen a whopping 74% decline to touch $ 90 million during the April- June quarter this year.
Naseem Usman told that 600 bales of Tando Adam, 400 bales of Moro, 800 bales of Shahdad Pur and 600 bales of Hyderabad were sold at Rs 8200 per maund. While 1000 bales of Sanghar were sold at Rs 8150 to Rs 8200.
Naseem Usman also said that rate of new cotton of Sindh is in between Rs 8150 to Rs 8225 per maund while in Punjab the rate of new cotton is in between Rs 8300 to Rs 8400 per maund. He told that Phutti of Sindh was sold in between Rs 3200 to Rs 3600 per 40 kg. The rate of Phutti in Punjab is in between Rs 3200 to Rs 3800 per 40 Kg.
The rate of Banola in Sindh was in between Rs 1450 to Rs 1500 while the price of Banola in Punjab was in between Rs 1500 to Rs 1550. The Spot Rate Committee of Karachi Cotton Association has increased the spot rate by Rs 100 per maund and closed it at Rs 8200 per maund. The polyester fiber was available at Rs 155 per kg. (Source: Business Recorder)