Source: Business Recorder

RECORDER REPORT

July 10, 2020
KARACHI: Local cotton market remained stable on Thursday. Market sources said that quality of the Phutti was affected due to rains in Sindh. The supply of Phutti was also affected due to rains in Sindh while the supply of Phutti in Punjab was recorded higher than usual.Cotton Analyst Naseem Usman told that increase in the import price was witnessed due to increase in the rate of dollar the local mills had increased the buying of local cotton. He also said that due to the opening of world markets textile and retail buyers were involved in aggressive buying.

He suggested that government should depute agriculture representative in the fields and Ghala Mandi to discourage sangli in Phutti. Naseem said that demand of cotton yarn is coming from towel manufacturers and from Chinese buyers. Naseem told that State Bank of Pakistan reduces mark up rate on investment under SBP’S Temporary Economic Refinance Facility (TERF) to 5% (from 7%) and on Long Term Financing Facility for non to 5% (from 6%) to extend the benefit of the recent reduction in the interest rate.

Meanwhile ICE cotton futures rose to the highest level since early March on Wednesday, breaking above a key technical level, as concerns persisted over damage to the crop due to dry weather in major cotton producing state. Cotton contracts for December rose 0 86 cent, or 1.4 percent to 63.88 per cent per lb by 2:07 pm. EDT (1807 GMT). Earlier, in the session, the contract touched 64.33 cents, it’s highest level since March 5.

Naseem told that 600 bales of new cotton crop of Mirpurkhas were sold at Rs 8350, 1400 bales of Sanghar were sold at Rs 8350 to Rs 8400, 2000 bales of Tando Adam were sold in between Rs 8300 to Rs 8400, 600 bales of Hyderabad were sold at Rs 8350, 600 bales of Mirpurkhas were sold at Rs 8350, 400 bales of Kotri were sold at Rs 8350, 400 bales of Shahdadpur were sold at Rs 8350, 200 bales of Nua Abad were sold at Rs 8300, 200 bales of Moro at Rs 8350 and 200 bales of Golarchi were sold at Rs 8300 per maund.

Naseem Usman also said that rate of new cotton of Sindh is Rs 9400 per maund while in Punjab the rate of new  cotton is Rs 8600 per maund. He told that Phutti of Sindh was sold in between Rs 3800 to Rs 4200 per 40 kg. The rate of Phutti in Punjab is in between Rs 3800 to Rs 4400 per 40 kg. The rate of Banola in Sindh was in between Rs 1875 to Rs 1950 while the price of Banola in Punjab was in between Rs 1950 to Rs 2225. The spot rate remained unchanged at Rs 8400 per maund. The polyester fiber was available at Rs 157 per kg. (Source: Business Recorder)