July 28, 2021
KARACHI: The Spot Rate Committee of the Karachi Cotton Association (KCA) on Tuesday increased the spot rate by Rs 200 per maund and closed it at Rs 12900 per maund. The local cotton market remained stable and trading volume was satisfactory.
Cotton Analyst Naseem Usman told Business Recorder the rate of cotton in Sindh is in between Rs 12900 Rs 13100 per maund. The rate of cotton in Punjab is in between Rs 13500 to Rs 13600 per maund. The rate of the new crop of Phutti in Sindh was in between Rs 4000 to Rs 5400 per 40 kg. The rate of Phutti in Punjab is in between Rs 5000 to Rs 6200 per 40 kg.
The rate of Banola in Sindh is in between Rs 1600 to Rs 1800 per maund. The rate of Banola in Punjab is in between Rs 1700 to Rs 1900 per maund. The rate of cotton in Balochistan is Rs 12900-13000 per maund. The rate of Phutti in Balochistan is in between Rs 5000 to RS 5200 per maund.
Seven textile mills of Faisalabad have been included among top 25 mills that contributed 21 percent shares in total national export of $25 billion.
Appreciating the role of Faisalabad in overall national economy, president Faisalabad Chamber of Commerce & Industry (FCCI) Engr Hafiz Ihtasham Javed said out of total 25 billion dollar export, the share of textile group is 15.5 billion dollar.
He thanked the government particularly Abdul Razak Dawood, Advisor to Prime Minister on Commerce & Investment and said the government has extended maximum facilities and its textile sector has responded positively by giving a quantum jump to the national exports. He said if the current trend continued, textile exports could increase up to 25 billion dollars just within next couple of years.
He also appreciated the Interloop, Nishat, Masood Textile, Sadaqat, Kalash, Gohar and Kamal Ltd and said that these groups are further expanding their production lines which will have a salutary impact on the national economy. ICE cotton futures inched higher in choppy trading on Monday as a weaker dollar warded off the effect of a slide in key Chicago grains.
Cotton contracts for December were up 0.06 cent, or 0.07%, to 89.72 cents per lb, at 12:01 p.m. EDT (1601 GMT), having lost 1.9% to trade at 87.96 cents per lb early in the session. Jordan Lea, senior trader at DECA Global, said drops in the dollar and grains are cancelling each other out.
Chicago soybeans dropped on Monday to their lowest level in two weeks while corn also weakened, as forecasts of cooler weather in parts of the US Midwest and slowing demand in top buyer China weighed on prices. Wheat prices also fell. The dollar eased, helping prices of cotton by making the fiber more affordable for buyers using other currencies.
Lea added that a forecast of slightly drier and hotter weather for August is favourable for cotton production, as “you would see the crop start to catch up a little bit, and really start to mature.” Market participants await a federal weekly crop progress report later on Monday.
Total futures market volume rose by 1,279 to 14,096 lots. Data showed total open interest gained 666 to 242,044 contracts in the previous session. The Spot Rate Committee of the Karachi Cotton Association increased the spot rate by Rs 200 per maund and closed it at Rs 12900 per maund. The rate of Polyester Fiber increased by Rs 3 per kg and was available at Rs 216 per kg.
(Source: Business Recorder)