Source: Business Recorder

RECORDER REPORT | October 09, 2019

KARACHI: Mills indulged in panic buying of cotton on the local market on Tuesday in the process of hectic trading, dealers said.

The official spot rate was unchanged at Rs 8700, they added. In ready session, about 21,000 bales of cotton changed hands between Rs 8150-8900, they said. Rates of seed cotton per 40kg in Sindh were at Rs 3300-4200 and in the Punjab prices were at Rs 3600-4200, they said. In Balochistan, seed cotton prices were at Rs 4000-4600 and cotton prices were at Rs 8700-8900, 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 was at Rs 187.

Market sources said that mills showed interest in fresh buying of cotton to replenish their stock. In fact, short cotton production is propelling buyers to cover as much as they can, they observed.

Cotton analyst, Naseem Usman said that to combat the present cotton crisis, All Pakistan Textile Mills Association (Aptma) held a discussion and it’s chairman Amanullah Kassim Machiyara urged the government to wave import duty on cotton. Change of climate and untimely rains damaged cotton crop, so the country would be able to achieve only 10 million bales of cotton during the current season, other experts said. Quality inputs mean best seeds, spray and fertilizers would help farmers to increase the production, they said.

On the other hand, reports showing that the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) requested the government that due to surge in cost of production, industry is facing crisis like situation as a result of surge in cost of production, so the government must cut down sales tax and interest, as early as possible.

Adds Reuters: Cotton prices were little changed on Monday as investors were in a wait-and-watch mode ahead of the US-China trade meeting and the release of the US Department of Agriculture’s (USDA) supply and demand report this week.

The most active cotton contract on ICE Futures US, the second-month December futures, was down 0.2 cent, or 0.3%, at 61.47 cents per lb as of 12:37 p.m. EDT (1637 GMT). Total futures market volume fell by 6,110 to 11,042 lots. Data showed total open interest fell 139 to 235,356 contracts in the previous session. (Source: Business Recorder)