October 04, 2019

Cotton Rates may go up further on short crop.

Untimely rains in the cotton belt, may cause further increase in the prices of lint on the local market on Thursday, dealers said.

The official spot rate was unchanged at Rs 8700, they added. In ready session, about 9,000 bales of cotton changed hands between Rs 7850-8900, they said.

 

Rates of seed cotton per 40kg in Sindh were at Rs 3600-4150 and in the Punjab prices were at Rs 3700-4200, they said. In Balochistan, cotton prices were at Rs 8300-8500, seed cotton prices were at Rs 4200-4700, they said.

 

In Sindh, Binola prices per maund were at Rs 1300-1500 and in Punjab rates were at Rs 1450-1600, they said and adding that polyester fibre per kg rate shed modestly at Rs 187.

 

Some analysts said that mills would have to increase import to keep a balance between demand and supply.

 

According to the market sources, fresh thunder storm in Sindh and Punjab hit standing crop this factor will push the rates of cotton higher in the coming days.

 

Commenting on the fortnightly arrivals of cotton, analyst, Naseem Usman said that 27.04 percent less against the last year.

 

Seed cotton (Phutti) equivalent to 2.933 million or 2,933,565 bales has reached ginneries across Pakistan till October 1, 2019, registering a 27.04 per cent shortfall compared to corresponding period of last year.

 

According to a fortnightly report of Pakistan Cotton Ginners Association (PCGA), out of total arrivals, over 2.47 million or 2,479,642 bales have undergone the ginning process.

 

Besides, Cotton Crop Assessment Committee (CCAC) will meet on Friday to analyse the total cotton production for the current season, Naseem Usman said.

 

Adds Reuters: ICE cotton futures were little changed on Wednesday as investors waited for weekly federal export sales data from the US Department of Agriculture for more information on demand for the natural fibre.

 

Cotton contract for December were 0.51% higher at 61.29 cents per lb by 2:26 pm EDT (1826 GMT).

 

Total futures market volume fell by 9,646 lots to 16,382 lots. Data showed total open interest fell 129 to 234,958 contracts in the previous session.

 

The following deals reported: 800 bales of cotton from Tando Adam at Rs 7850/7900, 600 bales from Dulatpur at Rs 8600, 1000 bales from Khairpur at Rs 8750, 800 bales from Saleh Pat at Rs 8750/8800, 400 bales from Rohri at Rs 8750/8800, 300 bales from Vehari at Rs 8700, 2000 bales from Rajanpur at Rs 8775/8800, 1200 bales from Haroonabad at Rs 8750/8850, 400 bales from Khanewal at Rs 8800, 600 bales from Faqirwali at Rs 8800, 1200 bales from Mianwali at Rs 8850, 400 bales from Fort Abbas at Rs 8850, 400 bales from Kot Sabzal at Rs 8850 and 400 bales from Rahim Yar Khan at Rs 8900, they said.