The markets in Pakistan opened after Eid recess amid low trading volume probably because of low demand and five days long Eid holiday. Moreover the buyers and sellers were busy in exchanging Eid greetings.
There was however modest activity in the market on Thursday. 941 bales of Rahim Yar Khan were sold at Rs21300 per 37.324 and 200 bales of Fort Abbas were sold at Rs19500 per 37.324 kg.
The cotton rates remained at pre-Eid level. In Sindh the cotton prices remained between Rs17000 to Rs20000 per 37.324 kg. In Punjab also the cotton was quoted at Rs18000 to Rs21000 per 37.324 kg.
Phutti rates in Sindh were quoted between Rs5500 to Rs8300 per 40 kg. The rate of Phutti in Punjab as usual was a little higher between Rs 6000 to Rs 8500 per 40 kg. The Spot Rate at Karachi Cotton Exchange remained unchanged at Rs 20,000 per maund. Polyester Fiber was available at Rs 375 per kg.
Cotton Association of India (CAI) on Thursday further reduced its cotton crop estimate for the 2022-23 season to 313 lakh bales as production is expected to decline in Maharashtra, Telangana and Haryana. The total cotton production in the last season is estimated at 307.05 lakh bales, the CAI said in a statement.The yield per kgs hectare which is presently 465 kgs/ha is still lower against the world average yield of about 755 Kgs /ha.
Cotton grows over 11.7 million hectares in India compared to 31.2 million hectares globally. The Indian cotton industry provides livelihood to about 60 million people in the country. India’s total production of cotton in the year 2021-22 was 34.1 million bales (bales of 170 kg each). Gujarat is the Largest Cotton-Producing State in India.
In the United States the US export sales were lower than expected. For cotton farmers there was good news as chances of rainfall in Texas, Oklahoma and Kansas brightened.
The cotton market had a rollercoaster week, hitting highs not seen in over a month before reversing to finish in the lower end of the five-month trading range. Macroeconomic news seems to be the main culprit of the major fluctuations seen in the futures market this week. Good economic news from China helped spur demand and increase prices before weak export sales put pressure on prices. May futures closed at 79.24 cents per pound, a sharp decrease of 411 points compared to the week prior. July futures settled at 80.09 cents per pound, down 310 points for the week. Market participation remains low, and total open interest fell 16,636 contracts to finish at 165,234. This is the lowest level seen since June 2020.
Outside markets had a mixed week with the release of economic news, first quarter bank earnings, and global economic data. On Friday, U.S. Retail Sales for March were released and showed weaker than expected sales, with a 1.0 percent decrease when compared to the month prior. Equities faced added pressure after the Fed said monetary policy needs to be tightened further. China’s Gross Domestic Product rose higher than expected to 4.5 percent year-over-year, an optimistic outlook for global economic growth. This was an overall boost for equities and commodities on Tuesday. The Dollar struggled to find footing this week, coming off an 11-month low from the weak economic data. Much like cotton, crude prices were also weaker from bearish economic news. Finally, U.S. initial jobless claims increased to 245,000, which is a relatively low level, but means the labor market is starting to lose its strength. The Federal Open Market Committee (FOMC) meets again on May 2 and 3, and many expect one more 25-basis-point interest rate hike at that time.
U.S. Export Sales were lower than anticipated for the week ending April 13, putting added pressure to an already lackluster market. Net sales were down compared to recent weeks, with a net total of 62,100 Upland bales booked for the current crop year and 38,000 bales booked for the 2023/24 crop year. The biggest buyer for the week was Bangladesh, with 27,700 bales purchased, and followed by Pakistan with 18,200 bales, China with 9,500 bales, Vietnam with 5,900 bales, and Indonesia with 4,600 bales. While sales were weak, exports continued to stay on pace to reach the current USDA export estimate of 12.2 million bales. A total of 289,800 bales were shipped for the week, which is slightly above the average needed to reach the export estimate. Pima had another week of good sales and reached a marketing year high for shipments. A net total of 25,200 Pima bales were sold for the week and 16,800 bales were shipped.
Weather is becoming increasingly more important as planting decisions are starting to be made. Although this week did not bring along much precipitation, weather models are predicting a better chance of rainfall throughout Texas, Oklahoma, and Kansas in the coming week. South Texas received precipitation over the past week, helping dry conditions and enhancing crop development. This week’s Crop Progress report showed that planting is on schedule in Texas, with 13 percent of the expected acreage now planted, which is right in line with the five-year average of 14 percent.
As the May contract is all but done, cotton trading should revert to the usual focal points. There are no major reports coming out next week, but with weather and planting progress in the back of traders’ minds, daily forecasts and the Crop Progress report are becoming more important. Additionally, the Export Sales Report and economic news will continue to be a central focus.
There was however modest activity in the market on Thursday. 941 bales of Rahim Yar Khan were sold at Rs21300 per 37.324 and 200 bales of Fort Abbas were sold at Rs19500 per 37.324 kg.
The cotton rates remained at pre-Eid level. In Sindh the cotton prices remained between Rs17000 to Rs20000 per 37.324 kg. In Punjab also the cotton was quoted at Rs18000 to Rs21000 per 37.324 kg.
Phutti rates in Sindh were quoted between Rs5500 to Rs8300 per 40 kg. The rate of Phutti in Punjab as usual was a little higher between Rs 6000 to Rs 8500 per 40 kg. The Spot Rate at Karachi Cotton Exchange remained unchanged at Rs 20,000 per maund. Polyester Fiber was available at Rs 375 per kg.
Cotton Association of India (CAI) on Thursday further reduced its cotton crop estimate for the 2022-23 season to 313 lakh bales as production is expected to decline in Maharashtra, Telangana and Haryana. The total cotton production in the last season is estimated at 307.05 lakh bales, the CAI said in a statement.The yield per kgs hectare which is presently 465 kgs/ha is still lower against the world average yield of about 755 Kgs /ha.
Cotton grows over 11.7 million hectares in India compared to 31.2 million hectares globally. The Indian cotton industry provides livelihood to about 60 million people in the country. India’s total production of cotton in the year 2021-22 was 34.1 million bales (bales of 170 kg each). Gujarat is the Largest Cotton-Producing State in India.
In the United States the US export sales were lower than expected. For cotton farmers there was good news as chances of rainfall in Texas, Oklahoma and Kansas brightened.
The cotton market had a rollercoaster week, hitting highs not seen in over a month before reversing to finish in the lower end of the five-month trading range. Macroeconomic news seems to be the main culprit of the major fluctuations seen in the futures market this week. Good economic news from China helped spur demand and increase prices before weak export sales put pressure on prices. May futures closed at 79.24 cents per pound, a sharp decrease of 411 points compared to the week prior. July futures settled at 80.09 cents per pound, down 310 points for the week. Market participation remains low, and total open interest fell 16,636 contracts to finish at 165,234. This is the lowest level seen since June 2020.
Outside markets had a mixed week with the release of economic news, first quarter bank earnings, and global economic data. On Friday, U.S. Retail Sales for March were released and showed weaker than expected sales, with a 1.0 percent decrease when compared to the month prior. Equities faced added pressure after the Fed said monetary policy needs to be tightened further. China’s Gross Domestic Product rose higher than expected to 4.5 percent year-over-year, an optimistic outlook for global economic growth. This was an overall boost for equities and commodities on Tuesday. The Dollar struggled to find footing this week, coming off an 11-month low from the weak economic data. Much like cotton, crude prices were also weaker from bearish economic news. Finally, U.S. initial jobless claims increased to 245,000, which is a relatively low level, but means the labor market is starting to lose its strength. The Federal Open Market Committee (FOMC) meets again on May 2 and 3, and many expect one more 25-basis-point interest rate hike at that time.
U.S. Export Sales were lower than anticipated for the week ending April 13, putting added pressure to an already lackluster market. Net sales were down compared to recent weeks, with a net total of 62,100 Upland bales booked for the current crop year and 38,000 bales booked for the 2023/24 crop year. The biggest buyer for the week was Bangladesh, with 27,700 bales purchased, and followed by Pakistan with 18,200 bales, China with 9,500 bales, Vietnam with 5,900 bales, and Indonesia with 4,600 bales. While sales were weak, exports continued to stay on pace to reach the current USDA export estimate of 12.2 million bales. A total of 289,800 bales were shipped for the week, which is slightly above the average needed to reach the export estimate. Pima had another week of good sales and reached a marketing year high for shipments. A net total of 25,200 Pima bales were sold for the week and 16,800 bales were shipped.
Weather is becoming increasingly more important as planting decisions are starting to be made. Although this week did not bring along much precipitation, weather models are predicting a better chance of rainfall throughout Texas, Oklahoma, and Kansas in the coming week. South Texas received precipitation over the past week, helping dry conditions and enhancing crop development. This week’s Crop Progress report showed that planting is on schedule in Texas, with 13 percent of the expected acreage now planted, which is right in line with the five-year average of 14 percent.
As the May contract is all but done, cotton trading should revert to the usual focal points. There are no major reports coming out next week, but with weather and planting progress in the back of traders’ minds, daily forecasts and the Crop Progress report are becoming more important. Additionally, the Export Sales Report and economic news will continue to be a central focus.