Cotton trading depicted uncertainty almost around the world. In Pakistan the appetite for the commodity was stronger but cotton Phutti issues impacted farmers. In China the crop needs extra irrigation due to unusual heat, while it was a roller coaster week for cotton in the US.
Due to increased demand the Spot Rate Committee of the Karachi Cotton Association (KCA) increased the spot rate by Rs 200 per maund and closed it at Rs 17,500 per maund.
Bulls prevailed in the local cotton market with higher trading volumes the rate of new crop of cotton in Sindh is in between Rs 17,500 to Rs 17,800 per maund. The rate of Phutti in Sindh is still slightly lower than the officially fixed rate being in between Rs 7,500 to Rs 8,200 per 40 kg. The rate of cotton in Punjab remained higher being in between Rs 17,800 to Rs 18,000 per maund and the rate of Phutti is ranges between Rs 7,600 to Rs 8,600 per 40 kg. The rate of cotton in Balochistan, which is considered better in quality is surprisingly lower at Rs 17,600 to Rs 17,700 per maund while the rate of Phutti is in between Rs 7,600 to Rs 7,900 per 40 kg.
The cotton market in Pakistan is currently facing a major disruption caused by the declining international price of cotton phutti. This downward trend in global prices is having far-reaching implications for the local market, exacerbating existing conflicts between the government and ginners and creating challenges for cotton growers. These issues are painting a bleak picture for Pakistan’s cotton sector.
The cotton market in Pakistan is currently facing a major disruption caused by the declining international price of cotton phutti. This downward trend in global prices is having far-reaching implications for the local market, exacerbating existing conflicts between the government and ginners and creating challenges for cotton growers. These issues are painting a bleak picture for Pakistan’s cotton sector.
The Pakistan Cotton Ginners’ Association (PCGA) has expressed concern over the conflict between the government and ginners, stating that cotton growers and the cotton crop will be negatively affected. They have urged the government to intervene and take steps to protect the interests of cotton growers.
The challenging international prices of cotton have made it difficult for local farmers to obtain fair prices, according to Muhammad Ali Iqbal, President of Concave Agri Services. Additionally, the liquidity crunch faced by textile manufacturers has made it challenging for them to purchase cotton from farmers, while ginners have halted processing due to issues with the Central Cotton Institute.
Despite Phutti issues the demand for cotton is on rise. On Thursday the mills bought around, 200 bales of Rani Pur were sold at Rs 17,700 per maund, 800 bales of Jhole, 800 bales of Moro were sold in between Rs 17,400 to Rs 17,700 per maund, 800 bales of Nawab Shah were sold at Rs 17,400 to Rs 17,600 per maund, 800 bales of Maqsooda Rind were sold at Rs 17,600 to Rs 17,700 per maund, 800 bales of Khair Pur were sold at Rs 17,500 to Rs 17,700 per maund, 800 bales of Sanghar were sold in between Rs 17,300 to Rs 17,500 per maund, 800 bales of Shahdad Pur were sold at Rs 17,400 to Rs 17,550 per maund, 1600 bales of Tando Adam were sold at Rs 17,400 to Rs 17,600 per maund, 600 bales of Mir Pur Khas were sold at Rs 17,475 per maund, 600 bales of Lodhran, 800 bales of Khanewal were sold in between Rs 17,900 to Rs 18,000 per maund, 400 bales of Hasil Pur, 800 bales of Vehari were sold at Rs 17,800 to Rs 18,000 per maund, 400 bales of Chichawatni were sold at Rs 17,900 per maund, 400 bales of Chowk Matila were sold at Rs 18,000 per maund, 600 bales of Ahmed Pur East, 400 bales of Burewala were sold at Rs 17,900 per maund, 400 bales of Peer Mahal were sold at Rs 17,800 to Rs 17,900 per maund, 200 bales of Khair Pur Tamiwali were sold at Rs 17,900 per maund, 1400 bales of Layyah were sold at Rs 17,800 to Rs 17,900 per maund, 1000 bales of Rajan Pur, 800 bales of Fazil Pur were sold at Rs 17,800 per maund, 800 bales of Tounsa Shareef were sold at Rs 17,900 per maund, 200 bales of Faqeer Wali were sold at Rs 17,900 per maund, 200 bales of Jhang were sold at Rs 17,800 per maund and 200 bales of Mian Channu were sold at Rs 17,950 per maund.
The uncertainty surrounding the exchange rate is also a concern for cotton exporters, as fluctuations in the exchange rate significantly impact export activities. Cotton is a highly vulnerable crop that is susceptible to seasonal variations and severe pest attacks. As a result, nearly 70 percent of Sindh’s cotton crop has been affected. Concerned circles say that despite these risks, growers continue to produce without adequate support.
Meanwhile in China its agriculture ministry on urged cotton growers in the world’s top producer to irrigate and fertilise more to cope with scorching temperatures that have hit major growing areas during the critical flowering period.
Large swathes of China have experienced periods of record high temperatures since last month, and a city in the northwestern region of Xinjiang broke records when the temperature reached 52.2 Celsius (125.96 Fahrenheit).
Xinjiang produces about 90% of China’s cotton but acreage has dropped by about 8% this year, partly because of cold, rainy weather that killed off shoots in the spring, according to a China-based trader. The Ministry of Agriculture and Rural Affairs said in its monthly crop update last week that high temperatures had impacted cotton bud growth in some regions.
Farmers should water the cotton if there’s no rainfall for over seven days or the daily average temperature surpasses 32C, and the top of the cotton plant shows signs of withering, the ministry said in a statement.
Cotton imports are expected to be 1.45 million metric tons, the ministry said in its monthly China Agricultural Supply and Demand Estimates (CASDE), a reduction of 400,000 tons from last month’s forecast.
In the United States cotton moved Cotton in Rollercoaster Fashion last week.for the Week Future prices moved in rollercoaster fashion this past week with December finishing up 180 points for the week. Friday the market posted a positive move of 129 points, only to be followed by Monday’s descent of 192 points. Tuesday’s market action was the most surprising of the week as December futures rallied 287 points. This had some analysts perplexed as this was the day prior to the WASDE release and more times than not, a quiet trading day.
Wednesday the market rallied above 83.00 cents per pound based on the December contract but faltered back towards the end of the day. Thursday’s December close of 81.68 placed the contract on the higher end of the scale looking back at the past 30 days. It seems the US dollar weakness coupled with talk of new business outweighed a slightly bearish WASDE report. Total open interest increased 6,111 contracts to 177,984.
News in outside markets this week provided a glimmer of hope where the U.S. economy is concerned. The Consumer Price Index (CPI) rose 0.2 percent in June, lower than what was expected. This is the smallest 12-month increase since March 2021. The index component for shelter was an outstanding contributor, accounting for 70 percent of the increase. Decreased energy prices also helped moderate the increase. Although the better than anticipated inflation news helped stocks rally, it is still likely the Fed will raise interest rates at the next Federal Open Markets Committee (FOMC) meeting at the end of the month. Crude oil was up significantly for the week, providing an additional boost to cotton prices. Major indexes were also up, with the NASDAQ and S&P 500 setting 52-week highs. The U.S. Dollar toppled this week, hitting a 52-week low, helping boost commodities.
The WASDE came as a slightly bearish surprise. For the 2022/23 crop year, U.S. production was unchanged at 14.47 million bales. Exports were lowered 100,000 bales to 12.9 million bales, ending stocks were raised 50,000 bales to 3.25 million bales, and use was increased 50,000 bales to 2.05 million bales. Lower exports were also not expected for the 2023/24 crop on the July report. U.S. exports were reduced by 250,000, bringing the total expected exports to 13.75 million bales. This flowed into ending stocks, which increased by 300,000 bales to 3.8 million bales. Production was unchanged in 2023/24 at 16.5 million bales.
The world side of the balance sheet saw considerable changes. Heading into the end of the 22/23 marketing year, ending stocks on the July report were increased by 1.06 to 93.95 million bales. This was a result of larger production seen in Australia and Brazil that outweighed increases in domestic use. For the 2023/24 crop year, world production was raised 120,000 bales due to larger crops in Pakistan. World consumption was lowered by 550,000 bales totaling 116.45 million bales. Beginning stocks were 1.1 million bales higher. Ending stocks also rose 1.7 million bales to 94.52 million bales.
U.S. export sales were dismal for the week ending July 6. A net total of 23,100 Upland bales were sold for the 2022/23 crop year and 51,000 bales for the 2023/24 crop year. The biggest buyer for the week was Bangladesh, booking a total of 18,200 bales, followed by Vietnam with 5,600 bales, Honduras with 3,200 bales, Taiwan with 2,000 bales, and Turkey with 1,900 bales. A total of 208,300 bales were exported for the week, down 20 percent when compared to the previous week. This is still behind the pace needed to reach the newly updated USDA export estimate of 12.9 million bales. Sales of Pima increased compared to the week prior. For the 2022/23 crop year a net total of 6,800 Pima bales were sold and for the 2023/24 crop year 300 bales were booked. Shipments of Pima slowed for the week, with a total of 1,400 bales exported.
Hot and, dry temperatures have been present throughout West Texas, Oklahoma, and Kansas this past week. Scattered storms helped bring some moisture to the dry areas, but more will be needed as the crop progresses. South Texas has also had excessive heat, which has helped as the crop has started to mature rapidly. It should be mostly sunny in the coming week, meaning harvest activities in the southernmost portion can proceed without interruption.
Due to increased demand the Spot Rate Committee of the Karachi Cotton Association (KCA) increased the spot rate by Rs 200 per maund and closed it at Rs 17,500 per maund.
Bulls prevailed in the local cotton market with higher trading volumes the rate of new crop of cotton in Sindh is in between Rs 17,500 to Rs 17,800 per maund. The rate of Phutti in Sindh is still slightly lower than the officially fixed rate being in between Rs 7,500 to Rs 8,200 per 40 kg. The rate of cotton in Punjab remained higher being in between Rs 17,800 to Rs 18,000 per maund and the rate of Phutti is ranges between Rs 7,600 to Rs 8,600 per 40 kg. The rate of cotton in Balochistan, which is considered better in quality is surprisingly lower at Rs 17,600 to Rs 17,700 per maund while the rate of Phutti is in between Rs 7,600 to Rs 7,900 per 40 kg.
The cotton market in Pakistan is currently facing a major disruption caused by the declining international price of cotton phutti. This downward trend in global prices is having far-reaching implications for the local market, exacerbating existing conflicts between the government and ginners and creating challenges for cotton growers. These issues are painting a bleak picture for Pakistan’s cotton sector.
The cotton market in Pakistan is currently facing a major disruption caused by the declining international price of cotton phutti. This downward trend in global prices is having far-reaching implications for the local market, exacerbating existing conflicts between the government and ginners and creating challenges for cotton growers. These issues are painting a bleak picture for Pakistan’s cotton sector.
The Pakistan Cotton Ginners’ Association (PCGA) has expressed concern over the conflict between the government and ginners, stating that cotton growers and the cotton crop will be negatively affected. They have urged the government to intervene and take steps to protect the interests of cotton growers.
The challenging international prices of cotton have made it difficult for local farmers to obtain fair prices, according to Muhammad Ali Iqbal, President of Concave Agri Services. Additionally, the liquidity crunch faced by textile manufacturers has made it challenging for them to purchase cotton from farmers, while ginners have halted processing due to issues with the Central Cotton Institute.
Despite Phutti issues the demand for cotton is on rise. On Thursday the mills bought around, 200 bales of Rani Pur were sold at Rs 17,700 per maund, 800 bales of Jhole, 800 bales of Moro were sold in between Rs 17,400 to Rs 17,700 per maund, 800 bales of Nawab Shah were sold at Rs 17,400 to Rs 17,600 per maund, 800 bales of Maqsooda Rind were sold at Rs 17,600 to Rs 17,700 per maund, 800 bales of Khair Pur were sold at Rs 17,500 to Rs 17,700 per maund, 800 bales of Sanghar were sold in between Rs 17,300 to Rs 17,500 per maund, 800 bales of Shahdad Pur were sold at Rs 17,400 to Rs 17,550 per maund, 1600 bales of Tando Adam were sold at Rs 17,400 to Rs 17,600 per maund, 600 bales of Mir Pur Khas were sold at Rs 17,475 per maund, 600 bales of Lodhran, 800 bales of Khanewal were sold in between Rs 17,900 to Rs 18,000 per maund, 400 bales of Hasil Pur, 800 bales of Vehari were sold at Rs 17,800 to Rs 18,000 per maund, 400 bales of Chichawatni were sold at Rs 17,900 per maund, 400 bales of Chowk Matila were sold at Rs 18,000 per maund, 600 bales of Ahmed Pur East, 400 bales of Burewala were sold at Rs 17,900 per maund, 400 bales of Peer Mahal were sold at Rs 17,800 to Rs 17,900 per maund, 200 bales of Khair Pur Tamiwali were sold at Rs 17,900 per maund, 1400 bales of Layyah were sold at Rs 17,800 to Rs 17,900 per maund, 1000 bales of Rajan Pur, 800 bales of Fazil Pur were sold at Rs 17,800 per maund, 800 bales of Tounsa Shareef were sold at Rs 17,900 per maund, 200 bales of Faqeer Wali were sold at Rs 17,900 per maund, 200 bales of Jhang were sold at Rs 17,800 per maund and 200 bales of Mian Channu were sold at Rs 17,950 per maund.
The uncertainty surrounding the exchange rate is also a concern for cotton exporters, as fluctuations in the exchange rate significantly impact export activities. Cotton is a highly vulnerable crop that is susceptible to seasonal variations and severe pest attacks. As a result, nearly 70 percent of Sindh’s cotton crop has been affected. Concerned circles say that despite these risks, growers continue to produce without adequate support.
Meanwhile in China its agriculture ministry on urged cotton growers in the world’s top producer to irrigate and fertilise more to cope with scorching temperatures that have hit major growing areas during the critical flowering period.
Large swathes of China have experienced periods of record high temperatures since last month, and a city in the northwestern region of Xinjiang broke records when the temperature reached 52.2 Celsius (125.96 Fahrenheit).
Xinjiang produces about 90% of China’s cotton but acreage has dropped by about 8% this year, partly because of cold, rainy weather that killed off shoots in the spring, according to a China-based trader. The Ministry of Agriculture and Rural Affairs said in its monthly crop update last week that high temperatures had impacted cotton bud growth in some regions.
Farmers should water the cotton if there’s no rainfall for over seven days or the daily average temperature surpasses 32C, and the top of the cotton plant shows signs of withering, the ministry said in a statement.
Cotton imports are expected to be 1.45 million metric tons, the ministry said in its monthly China Agricultural Supply and Demand Estimates (CASDE), a reduction of 400,000 tons from last month’s forecast.
In the United States cotton moved Cotton in Rollercoaster Fashion last week.for the Week Future prices moved in rollercoaster fashion this past week with December finishing up 180 points for the week. Friday the market posted a positive move of 129 points, only to be followed by Monday’s descent of 192 points. Tuesday’s market action was the most surprising of the week as December futures rallied 287 points. This had some analysts perplexed as this was the day prior to the WASDE release and more times than not, a quiet trading day.
Wednesday the market rallied above 83.00 cents per pound based on the December contract but faltered back towards the end of the day. Thursday’s December close of 81.68 placed the contract on the higher end of the scale looking back at the past 30 days. It seems the US dollar weakness coupled with talk of new business outweighed a slightly bearish WASDE report. Total open interest increased 6,111 contracts to 177,984.
News in outside markets this week provided a glimmer of hope where the U.S. economy is concerned. The Consumer Price Index (CPI) rose 0.2 percent in June, lower than what was expected. This is the smallest 12-month increase since March 2021. The index component for shelter was an outstanding contributor, accounting for 70 percent of the increase. Decreased energy prices also helped moderate the increase. Although the better than anticipated inflation news helped stocks rally, it is still likely the Fed will raise interest rates at the next Federal Open Markets Committee (FOMC) meeting at the end of the month. Crude oil was up significantly for the week, providing an additional boost to cotton prices. Major indexes were also up, with the NASDAQ and S&P 500 setting 52-week highs. The U.S. Dollar toppled this week, hitting a 52-week low, helping boost commodities.
The WASDE came as a slightly bearish surprise. For the 2022/23 crop year, U.S. production was unchanged at 14.47 million bales. Exports were lowered 100,000 bales to 12.9 million bales, ending stocks were raised 50,000 bales to 3.25 million bales, and use was increased 50,000 bales to 2.05 million bales. Lower exports were also not expected for the 2023/24 crop on the July report. U.S. exports were reduced by 250,000, bringing the total expected exports to 13.75 million bales. This flowed into ending stocks, which increased by 300,000 bales to 3.8 million bales. Production was unchanged in 2023/24 at 16.5 million bales.
The world side of the balance sheet saw considerable changes. Heading into the end of the 22/23 marketing year, ending stocks on the July report were increased by 1.06 to 93.95 million bales. This was a result of larger production seen in Australia and Brazil that outweighed increases in domestic use. For the 2023/24 crop year, world production was raised 120,000 bales due to larger crops in Pakistan. World consumption was lowered by 550,000 bales totaling 116.45 million bales. Beginning stocks were 1.1 million bales higher. Ending stocks also rose 1.7 million bales to 94.52 million bales.
U.S. export sales were dismal for the week ending July 6. A net total of 23,100 Upland bales were sold for the 2022/23 crop year and 51,000 bales for the 2023/24 crop year. The biggest buyer for the week was Bangladesh, booking a total of 18,200 bales, followed by Vietnam with 5,600 bales, Honduras with 3,200 bales, Taiwan with 2,000 bales, and Turkey with 1,900 bales. A total of 208,300 bales were exported for the week, down 20 percent when compared to the previous week. This is still behind the pace needed to reach the newly updated USDA export estimate of 12.9 million bales. Sales of Pima increased compared to the week prior. For the 2022/23 crop year a net total of 6,800 Pima bales were sold and for the 2023/24 crop year 300 bales were booked. Shipments of Pima slowed for the week, with a total of 1,400 bales exported.
Hot and, dry temperatures have been present throughout West Texas, Oklahoma, and Kansas this past week. Scattered storms helped bring some moisture to the dry areas, but more will be needed as the crop progresses. South Texas has also had excessive heat, which has helped as the crop has started to mature rapidly. It should be mostly sunny in the coming week, meaning harvest activities in the southernmost portion can proceed without interruption.