The local cotton market was near a crash as global cotton rates were under pressure. The rate of Future Trading of New York Cotton is 68 cent per pound which is lowest in four years.
Consequently the price of new cotton in Sindh dropped to between Rs 16,700 to Rs 16,800 per maund. The rate of Phutti in Sindh has become a nightmare for the farmers plunging to between Rs 6,600 to Rs 7,200 per 40 kg. The rate of cotton in Punjab is in between Rs 16,800 to Rs 17,200 per maund. The rate of Phutti in Punjab has significantly dropped to between Rs 6,800 to Rs 7,500 per 40 kg.
The rate of cotton in Balochistan is in between Rs 16,800 to Rs 17,000 per maund. The rate of Phutti in Balochistan is in between Rs 6,700 to Rs 7,300 per maund.
The Spot Rate Committee of the Karachi Cotton Association (KCA) further decreased the spot rate by Rs 5,00 per maund fixing it at Rs 17,300 per maund.
Trading in cotton was brisk as on Thursday 1400 bales of Tando Adam were sold in between Rs 16,900 to Rs 17,500 per maund, 600 bales of Chowdagi were sold in between Rs 17,400 to Rs 17,500 per maund, 400 bales of Halani, 600 bales of Maqsooda were sold in between Rs 17,000 to Rs 17,300 per maund, 800 bales of Sanghar were sold in between Rs 17,000 to Rs 17, 400 per maund, 600 bales of Shahdad Pur were sold at Rs 17,000 to Rs 17, 400 per maund, 600 bales of Shsh Pur Chakar were sold at Rs 17,000 to to Rs 17,400 per maund, 600 bales of Hala were sold at Rs 17,000 to Rs 17,200 per maund, 600 bales of Sarkand were sold at Rs 17,000 to Rs 17, 300 per maund, 400 bales of Nawab Shah were sold at Rs 17,000 to Rs 17,400 per maund, 800 bales of Hyderabad were sold at Rs 17,000 to Rs 17,300 per maund, 200 bales of Khipro were sold at Rs 17,000 per maund, 600 bales of Taunsa Shareef were sold at Rs 17,000 to Rs 18,000 per maund, 200 bales of Khanewal were sold at Rs 17,500 to Rs 17,900 per maund, 800 bales of Mianchannu were sold at Rs 17,500 to Rs 18,000 per maund, 1000 bales of Chichawatni were sold at Rs 17,600 to 18,000 per maund, 400 bales of Haroonabad, 400 bales of Hasil Pur were sold in between Rs 17,700 to Rs 18,000 per maund, 200 bales of Gojra were sold at Rs 17,700 per maund, 200 bales of Fort Abbas were sold at Rs 18,000 per maund, 600 bales of Burewala were sold in between Rs 17,500 to Rs 17,800 per maund, 800 bales of Layyah were sold in between Rs 17,500 to Rs 17,700 per maund, 200 bales of Multan, 200 bales of Shujaabad and 200 bales of Bahawalpur were sold at Rs 17,500 per maund.
The retail price range for Argentina cotton is between US$ 1.19 and US$ 1.23 per kilogram or between US$ 0.54 and US$ 0.56 per pound(lb). The retail price range in Argentine Peso for cotton is between ARS 276.81 and ARS 285.66 per kilogram or between ARS 125.54 and ARS 129.55 per pound(lb) in Buenos Aires and Cordoba.
The retail price range for Australian cotton is between US$ 4.04 and US$ 8.67 per kilogram or between US$ 1.83 and US$ 3.93 per pound(lb). The retail price range in Australian Dollar for cotton is between AUD 6.07 and AUD 13.04 per kilogram or between AUD 2.75 and AUD 5.91 per pound(lb) in Canberra and Melbourne.
The retail price range for Spain cotton is between US$ 3.44 and US$ 4.42 per kilogram or between US$ 1.56 and US$ 2.00 per pound(lb). The retail price range in Euro for cotton is between EUR 3.17 and EUR 4.08 per kilogram or between EUR 1.44 and EUR 1.85 per pound(lb) in Madrid and Barcelona.
The retail price range for Brazil cotton is between US$ 1.59 and US$ 1.68 per kilogram or between US$ 0.72 and US$ 0.76 per pound(lb). The retail price range in Brazilian Real for cotton is between BRL 7.95 and BRL 8.39 per kilogram or between BRL 3.61 and BRL 3.81 per pound(lb) in Brasilia and Rio de Janeiro.
The retail price range for Mali cotton is between US$ 0.78 and US$ 1.56 per kilogram or between US$ 0.35 and US$ 0.71 per pound(lb). The retail price range in CFA Franc BCEAO for cotton is between XOF 475.22 and XOF 950.44 per kilogram or between XOF 215.52 and XOF 431.04 per pound(lb) in Bamako and Sikasso.
The retail price range for Uzbekistan cotton is between US$ 0.49 and US$ 0.89 per kilogram or between US$ 0.22 and US$ 0.40 per pound(lb). The retail price range in Uzbekistan Sum for cotton is between UZS 6,148.75 and UZS 11,067.75 per kilogram or between UZS 2,788.55 and UZS 5,019.39 per pound(lb) in Tashkent and Samarkand.
The retail price range for Kazakhstan cotton is between US$ 0.78 and US$ 1.23 per kilogram or between US$ 0.35 and US$ 0.56 per pound(lb). The retail price range in Tenge for cotton is between KZT 349.69 and KZT 553.31 per kilogram or between KZT 158.59 and KZT 250.93 per pound(lb) in Nur-Sultan and Almaty.
The retail price range for Egypt cotton is between US$ 4.82 and US$ 5.78 per kilogram or between US$ 2.18 and US$ 2.62 per pound(lb). The retail price range in Egyptian Pound for cotton is between EGP 150.55 and EGP 180.66 per kilogram or between EGP 68.28 and EGP 81.93 per pound(lb) in Cairo and Alexandria.
The retail price range for Pakistan cotton is between US$ 3.50 and US$ 6.85 per kilogram or between US$ 1.59 and US$ 3.10 per pound(lb). The retail price range in Pakistan Rupee for cotton is between PKR 1,000.25 and PKR 1,955.80 per kilogram or between PKR 453.63 and PKR 886.98 per pound(lb) in Islamabad and Lahore.
The retail price range for Portugal cotton is between US$ 2.24 and US$ 5.66 per kilogram or between US$ 1.01 and US$ 2.57 per pound(lb). The retail price range in Euro for cotton is between EUR 2.07 and EUR 5.23 per kilogram or between EUR 0.94 and EUR 2.37 per pound(lb) in Lisbon and Porto.
The retail price range for India cotton is between US$ 0.58 and US$ 1.25 per kilogram or between US$ 0.26 and US$ 0.57 per pound(lb). The retail price range in Indian Rupee for cotton is between INR 47.84 and INR 103.64 per kilogram or between INR 21.69 and INR 47.00 per pound(lb) in New Delhi and Mumbai.
The retail price range for Turkey cotton is between US$ 2.43 and US$ 3.65 per kilogram or between US$ 1.10 and US$ 1.65 per pound(lb). The retail price range in Turkish Lira for cotton is between TRY 48.14 and TRY 72.21 per kilogram or between TRY 21.83 and TRY 32.75 per pound(lb) in Ankara and Istanbul.
The retail price range for US cotton is between US$ 3.92 and US$ 6.86 per kilogram or between US$ 1.78 and US$ 3.11 per pound(lb). The retail price range in Euro for cotton is between EUR 3.60 and EUR 6.29 per kilogram or between EUR 1.63 and EUR 2.85 per pound(lb) in Washington and New York.
In the United States after trading back and forth throughout the week, cotton futures found support and made marginal gains. Last Friday’s WASDE put pressure on prices, but Monday saw a triple-digit rally in futures prices.
Prices fluctuated throughout the week due to speculators continuing to cover short positions and potentially favorable rainfall in Texas. The December contract rose 106 points, settling at 71.93 cents per pound. The imbalance of on-call cotton remains wide. As of July 12, there were 55,379 on-call sales and 80,938 on-call purchase contracts.
Trading volumes were light but on par with this time of the year. The total number of open contracts increased by 3,422 to 218,622. Bales eligible for delivery against futures continued to decrease. This week, 736 bales were decertified for delivery, reducing the total certificated stock to 41,122.
The U.S. stock market had a choppy week of trading. The Dow Jones Industrial Average reached a record high at one point before erasing the gains. Unlike the Dow, the NASDAQ recorded its worst session in two years during the week. China’s economy grew 4.2 percent, far less than the anticipated 5.1 percent. Although China’s exports are strong, its real estate-based recession has significantly curtailed domestic spending.
After last month’s cut, the European Central Bank held interest rates steady at its July meeting, but there appears to be room for cuts later in the year. Investors in the U.S. are awaiting the Federal Open Markets Committee (FOMC) meeting at the end of the month to see what direction the Fed takes. June U.S. Retail Sales indicated U.S. consumers are still shopping. The flat month-over-month reading was better than expected and helped push stocks up. Since June 2023, retail sales have increased 2.3 percent. Clothing and clothing accessories store sales increased 0.6 percent month-over-month and 4.3 percent year-over-year.
U.S. export sales were minimal for the current marketing year, but with only three weeks left in the year, no large bookings were expected. Sales for the next crop year showed an uptick in demand compared to recent weeks. U.S. exporters sold a marketing year low of 27,200 Upland bales for the current crop year. The current number of bales committed for new crop is still low for this time of the year, but this week’s healthy sales push outstanding sales above what they were at this time last year.
For the 2024/25 crop year, exporters sold 165,600 bales. Only three more Export Sales Reports will be released for the 2023/24 crop year. The 113,100 bales shipped are not at the level needed to reach the 11.6 million bale estimate. Pima merchandisers sold 3,800 current crop bales and exported 4,300 bales. A net of 2,100 bales were committed for the 2024/25 crop year.
The good to excellent condition rating for the U.S. remained at 45 percent. The quality of the crop in Texas decreased this week, dropping 1 percent to 34 percent of the crop rated good to excellent. Oklahoma showed a 2 percent increase, rising to 76 percent, and Kansas increased 7 percent to 64 percent.
In the U.S., 64 percent of cotton is now squaring, and 27 percent is setting. Overall, the crop is progressing well. Rain is forecast over the weekend, which would benefit West Texas, Oklahoma, and Kansas crops. This weekend, the lows are predicted to reach the 70s and even the 60s, allowing the crop to get a break from this dry heat. In South Texas, sunshine and open skies would be welcome to help the crop in the final stages of maturation.
Next week will be relatively slow for cotton news. However, outside markets should be active due to the release of the U.S. second-quarter GDP and the Personal Consumption Expenditure (PCE). As of Thursday afternoon, grower offers totaled 16,796 bales. There was no trading activity on the G2B platform in the past week.
