December 07, 2019

Volume of business falls on cotton market.

Trading activity slowed down on the cotton market on Friday owing to lack of fresh leads, dealers said.

The official spot rate was down by Rs 100 to Rs 8800, they added. In ready session, about 5000 bales of cotton changed hands between Rs 7650-9000, they said.

 

Rates of seed cotton per 40kg in Sindh were at Rs 2600-4300 and in the Punjab prices were at Rs 3500-4400, they said. In Balochistan, seed cotton prices were at Rs 3500-4300, they said.

 

In Sindh, Binola prices per maund were at Rs 1400-1700, in Punjab and Balochistan rates were at Rs 1500-1600, they said and adding that polyester fibre was available at Rs 179 per kg.

 

Market sources said that mills indulged in cautious buying of cotton to replenish their stock.

 

Cotton analyst, Naseem Usman said that short supply of quality cotton is the main factor behind the decline in trading activity.

 

Other experts said that the government should come forward to tackle with the growers and farmers problems.

 

Adds Reuters: ICE cotton futures settled lower on Thursday, hurt by uninspiring export sales data from the US Department of Agriculture (USDA), while lack of clarity in trade talks between the United States and China kept investors on edge. Cotton contracts for March settled down 0.19 cent, or 0.3%, at 64.51 cents per lb.

 

Total futures market volume fell by 3,261 to 21,431 lots. Data showed total open interest gained 289 to 197,012 contracts in the previous session.

 

Total futures market volume fell by 8,679 to 24,555 lots. Data showed total open interest fell 267 to 196,723 contracts in the previous session.

 

The following deals reported: 1000 bales of cotton from Khanpur at Rs 8100/8300, 1000 bales from Rahim Yar Khan at Rs 9000, (SEED) 470 bales from Layyah at Rs 8500/8530, 400 bales from Haroonabad at Rs 8400, 400 bales from Fort Abbas at Rs 8400, 400 bales from Bahawal Nagar at Rs 7775, 600 bales from Chichawatni at Rs 7650, 600 bales from Vehari at Rs 7650, they said.

December 06, 2019

Cotton slips after export sales report.

ICE cotton futures settled lower on Thursday, hurt by uninspiring export sales data from the US Department of Agriculture (USDA),

while lack of clarity in trade talks between the United States and China kept investors on edge.

 

Cotton contracts for March settled down 0.19 cent, or 0.3%, at 64.51 cents per lb. It traded within a range of 64.41 and 65.21 cents a lb.

 

“The USDA reports are pretty friendly the last couple of months, so maybe some optimism there that they are going to cut US yields again, but other than that exports this morning weren't great," said John Payne, senior broker at Daniels trading.

 

The USDA in its weekly export-sales report showed net sales of 163,700 running bales (RB) for the 2019/20 marketing year, down 42% from the previous week and 36% from the prior four-week average, for the period ended Nov. 28.

 

“The market is looking at tomorrow's expiration for the December market and waiting for Tuesday's supply demand report," said Keith Brown, principal at cotton brokers Keith Brown and Co in Moultrie, Georgia.

 

“Falling production and hope that there could be a trade deal is keeping the market buoyed up here."

 

The USDA's monthly World Agriculture Supply and Demand Estimates (WASDE) report is due on Dec. 10.

 

On the trade front, US Treasury Secretary Steven Mnuchin said that trade talks with China are on track, with deputy negotiators from both countries holding a call on Thursday as they actively worked toward a deal.

 

This comes after US President Donald Trump said on Wednesday that trade talks with China were going “very well," sounding more positive than on Tuesday when he said a trade deal might have to wait until after the 2020 US presidential election.

 

Total futures market volume fell by 3,261 to 21,431 lots. Data showed total open interest gained 289 to 197,012 contracts in the previous session. Certificated cotton stocks deliverable as of Dec. 5 totaled 57,469 480-lb bales, down from 83,666 in the previous session.

December 06, 2019

Business activity improves on cotton market.

Business activity improved on the cotton market on Thursday as declining rates attracted mills and spinners, dealers said.

The official spot rate was unchanged at Rs8900, they added. In ready session, about 16,000 bales of cotton changed hands between Rs8000-9000, they said.

 

Rates of seed cotton per 40kg in Sindh were at Rs2600-4300 and in the Punjab prices were at Rs3500-4400, they said. In Balochistan, seed cotton prices were at Rs3500-4300, they added.

 

In Sindh, Binola prices per maund were at Rs1400-1700, in Punjab and Balochistan rates were at Rs1500-1600, they said and adding that polyester fibre was available at Rs179 per kg.

 

According to the market sources, some leading mills were active buyers to replenish their stock. The ginners indulged in selling of low quality cotton, in the meantime, some of them cut down asking prices amid rising fears of more decline in rates.

 

Cotton analyst, Naseem Usman said that cotton prices may fall in the coming days because the mills were not willing to pay above their psychological levels. Furthermore, the Karachi Cotton Association (KCA), Chairman Khawaja Mohammad Zubair, while in meeting with the members of Cotton Advisory Committee of the KCA, urged the government to take necessary measures on urgent basis to increase cotton production next season.

 

Because, despite falling trend in cotton production, the government is not looking serious in providing basic facilities to the growers and farmers, he added. The government would have to adopt practical steps against supply of substandard cotton seeds, pesticides and other inputs, he said.

 

Adds Reuters: ICE cotton futures rose more than 1% on Wednesday after falling for four straight sessions on technical buying, while report suggesting progress on the US-China trade talks rekindled some optimism for a breakthrough. Cotton contracts for March rose 0.80 cent, 1.25%, to 64.85 cents per lb by 02:19 p.m. ET.

 

Total futures market volume fell by 8,679 to 24,555 lots. Data showed total open interest fell 267 to 196,723 contracts in the previous session.

 

The following deals reported: 2400 bales of cotton from Ghotki at Rs 8900, 1500 bales from Panu Aqil at Rs 8900, 3000 bales from Mirpur Mathelo at Rs 8900, 1000 bales from Sadiqabad at Rs 8900/9000, 600 bales from Rahim Yar Khan at Rs 8000/9000, 1400 bales from Khanpur at Rs 8850, 800 bales from Marrot at Rs 8450/8500, 1000 bales from Fort Abbas at Rs 8425, 400 bales from Faqeerwali at Rs 8200, 1000 bales from Hasilpur at Rs 8000/8100, 1400 bales from Haroonabad at Rs 8000/8100, 1000 bales from Bahawal Nagar at Rs 8000, 400 bales from Tamewali at Rs 8000 and 400 bales from Mianwali at Rs 8000, they said.

December 05, 2019

Prices raised by ginners after PCGA data.

The ginners have started raising asking prices after the Pakistan Cotton Ginners Association (PCGA) fortnightly data,

showing further decline in phutti arrivals, dealers said on the cotton market here on Wednesday.

 

The official spot rate was unchanged at Rs 8900, they added. In ready session, about 9000 bales of cotton changed hands between Rs 8000-9200, they said.

 

Rates of seed cotton per 40kg in Sindh were at Rs 2600-4300 and in the Punjab prices were at Rs 3500-4400, they maintained. In Balochistan, seed cotton prices were at Rs 3500-4300, they said.

 

In Sindh, Binola prices per maund were at Rs 1400-1700, in Punjab and Balochistan rates were at Rs 1500-1600, they said and adding that polyester fibre was available at Rs 179.

 

Market sources said that the mills were keen to buy low quality of cotton but the ginners refrained from selling, trying to make profit as much as they can.

 

Cotton analyst, Naseem Usman said that the government had set the crop's target at 15 million bales for 2019-20 season but, so far, the output has been discouraging.

 

Other brokers said that after achieving 14.98 million bales in 2013-14, cotton output has been on decline; as a result the government is importing cotton to meet local demand, which is extra burden on the foreign exchange reserves.

 

It's high time that the government must take urgent steps to cope up with the gloomy situation, they observed.

 

Adds Reuters: ICE cotton futures fell over 1% to a more than one-week low on Tuesday as comments from US President Donald Trump diluted optimism around a potential breakthrough in the US-China trade dispute.

 

Cotton contracts for March fell 0.69 cent, or 1.06%, to 64.11 cents per lb by 01:44 p.m. ET, the level last seen on Nov. 22. It traded within a range of 64.05 to 64.93 cents a lb.

 

Total futures market volume fell by 5,712 to 26,444 lots. Data showed total open interest fell 2,856 to 196,990 contracts in the previous session.

 

The following deals reported: 200 bales of cotton from Mirpur Mathelo at Rs 9000/9200, 1000 bales from Dherki at Rs 9175/9200, 1000 bales from Ghotki at Rs 9175/9200, 400 bales from Panu Aqil at Rs 9175/9200, 1400 bales from Rahim Yar Khan at Rs 8950/9000, 1000 bales from Sadiqabad at Rs 9000, 1000 bales from Khanpur at Rs 8900, 1400 bales from Fort Abbas at Rs 8250/8450, 400 bales from Bahawalpur at Rs 8000, 600 bales from Mianwali at Rs 8000 and 200 bales from Donga Bonga at Rs 8000, they said.