KARACHI: Local cotton market remained stable on Wednesday. Market sources said that quality of the Phutti was affected due to rains in Sindh.
Cotton Analyst Naseem Usman told that trading volume remained low. The rate of cotton witnessed a little bit downward trend. The mills were involved in limited buying according to their needs because of the decreasing trend in the demand and price of cotton yarn.
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.
Advisor to Prime Minister on Commerce and Investment Abdul Razak Dawood has congratulated all the exporters on good performance in 2019-20, in spite of the very challenging situation caused by COVID 19.
Meanwhile, Towel Manufacturers' Association (TMA) requested the government to continue concessionary tariffs of utilities for the export-oriented industry of the country.
In a letter to Advisor for Commerce, Textile Industry, Production and Investment, Abdul Razak Dawood, the TMA said that "on the recommendation of Ministry of Textile, FBR provided concessionary rates of US cent 7.5/kwh for electricity, RLNG at $6.5 per MMBTU and gas at RS786 per MMBTU to registered manufacturers and exporters of five zero rated sectors...".
ICE cotton futures gained on Tuesday as a dry spell in the biggest cotton growing US state, Texas, provided a lift to the natural fiber market, hit by coronavirus-led reduction in demand.
Cotton contracts for December rose 0.13 cent, or 0.21%, at 63.27 cents per lb as of 12:48 p.m. ET (1648 GMT). Prices on Monday rose to their highest level in 4-months at 63.70. "We are looking for stable prices for the very short-term. As long as the weather stays hot and dry in west Texas, we have a little bit more impetus to go higher," said Jack Scoville, vice president at Chicago-based Price Futures Group.
Naseem also told that raw cotton exports from the country during first 11 months of fiscal year ended on June 30, 2020 registered an decreased of 9.93 percent as compared the exports of the corresponding period of last year.
During the period from July-May 2019-20, about 12,776 metric tons of raw cotton worth $17.005 million exported as compared the exports $18.879 million of the same period of last year.
According to the data of Pakistan Bureau of Statistics, about 11,790 metric tons of raw cotton was exported during 11 months of last financial year. During the period under review, 376,286 metric tons of cotton, yarn valuing $910.582 million were also exported as against the exports of 403,580 metric tons worth $1.048 billion of same period of last year.
The exports of cotton yarn registered negative growth of 13.12 percent, the data revealed. However, in 11 months of last fiscal year, the exports of art, silk and synthetic textile grew by 6.45 percent as these commodities worth $290.525 million exported as compared to the exports of $272.910 million of same period of last year.
He told that 400 bales of new cotton crop of Mirpurkhas were sold in between Rs 8300 to Rs 8350, 100 bales of Sanghar were sold at Rs 8300 to Rs 8350, 2200 bales of Tando Adam were sold in between Rs 8300 to Rs 8450, 800 bales of Hyderabad were sold in between Rs 8325 to Rs 8350, 200 bales of Tando Muhammad Khan were sold at Rs 8325 and 200 bales of Golarchi were sold at Rs 8325 per maund.
In Punjab 100 bales of new cotton of Samundari were sold at Rs 8600, 100 bales of Gojra were sold at Rs 8600 and 400 bales of Chichawatni were sold in between Rs 8600 to Rs 8650.
He also told that 1000 bales of cotton from the areas of Balochistan including Lasbela, Sakraan, Wander and Doreji were available at Rs 4300 to Rs 4350 per maund.
Naseem Usman also said that rate of new cotton of Sindh is Rs 8300 to 8350 per maund while in Punjab the rate of new cotton is in between Rs 8600 to Rs 8650.
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.
Copyright Business Recorder, 2020
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