The local cotton market again remained bearish and the trading volume remained low. The new crop has not started arriving and ginners are sitting on low leftover stocks
Cotton rates in both Sindh and Punjab ranged from Rs 19,500 to Rs 21,500 per maund. Phutti prices are being quoted in Punjab only and range between Rs 9,500 and Rs 10,000 per 40 kg.
The Spot Rate was Rs 20,000 per maund. Polyester Fiber was available at Rs 367 per kg.
Cotton production in Pakistan is much below the requirements of the textile industry. Cotton import is a heavy burden on Pakistan’s foreign exchange. Keeping this in view the Punjab is determined to revive Southern Punjab as a hub for cotton production, offering various incentives to growers and aiming at bringing at least 4 million acres of land under cotton cultivation.
This year, the province has set a production target of 6.5 million bales of cotton, and the government is mobilizing all available resources to achieve this goal. During the last season, the province achieved production of 6.028 million bales and also brought 4.125 million acres of land under cotton cultivation. Syed Ashiq Hussain Kirmani, Punjab’s Minister for Agriculture, expressed these intentions during the third review meeting on cotton crops, which took place at Muhammad Nawaz Sharif Agricultural University in Multan.
Cotton is produced in few countries but it is consumed in numerous countries for making apparel and other textile products. Taxtalks is appending below cotton retail rates in both cotton producing and textile manufacturing economies.
The retail price range for China cotton is between US$ 0.73 and US$ 0.85 per kilogram or between US$ 0.33 and US$ 0.39 per pound(lb). The retail price range in Yuan Renminbi for cotton is between CNY 5.11 and CNY 5.99 per kilogram or between CNY 2.32 and CNY 2.72 per pound(lb) in Beijing and Shanghai.
The retail price range for Australian cotton is between US$ 4.13 and US$ 8.88 per kilogram or between US$ 1.88 and US$ 4.03 per pound(lb). The retail price range in Australian Dollar for cotton is between AUD 6.22 and AUD 13.36 per kilogram or between AUD 2.82 and AUD 6.06 per pound(lb) in Canberra and Melbourne.
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 474.24 and XOF 948.49 per kilogram or between XOF 215.08 and XOF 430.15 per pound(lb) in Bamako and Sikasso.
The retail price range for Indonesian cotton is between US$ 0.86 and US$ 1.15 per kilogram or between US$ 0.39 and US$ 0.52 per pound(lb). The retail price range in Rupiah for cotton is between IDR 14,334.00 and IDR 19,112.00 per kilogram or between IDR 6,500.68 and IDR 8,667.57 per pound(lb) in Jakarta and Surabaya.
The retail price range for Vietnam cotton is between US$ 1.46 and US$ 2.43 per kilogram or between US$ 0.66 and US$ 1.10 per pound(lb). The retail price range in Dong for cotton is between VND 36,431.25 and VND 60,718.75 per kilogram or between VND 16,522.11 and VND 27,536.85 per pound(lb) in Hanoi and Ho Chi Minh City.
The retail price range for Cambodia cotton is between US$ 0.25 and US$ 0.44 per kilogram or between US$ 0.11 and US$ 0.20 per pound(lb). The retail price range in Riel for cotton is between KHR 1,027.19 and KHR 1,848.94 per kilogram or between KHR 465.84 and KHR 838.52 per pound(lb) in Phnom Penh and Siem Reap.
The retail price range for Thailand cotton is between US$ 1.45 and US$ 3.39 per kilogram or between US$ 0.66 and US$ 1.54 per pound(lb). The retail price range in Baht for cotton is between THB 49.82 and THB 116.25 per kilogram or between THB 22.60 and THB 52.72 per pound(lb) in Bangkok and Chiand Mai.
The retail price range for Myanmar cotton is between US$ 0.72 and US$ 2.16 per kilogram or between US$ 0.33 and US$ 0.98 per pound(lb). The retail price range in Kyat for cotton is between MMK 1,530.16 and MMK 4,590.48 per kilogram or between MMK 693.95 and MMK 2,081.85 per pound(lb) in Naypyitaw and Yangon.
The retail price range for Bangladesh cotton is between US$ 0.92 and US$ 1.61 per kilogram or between US$ 0.42 and US$ 0.73 per pound(lb). The retail price range in Taka for cotton is between BDT 98.53 and BDT 173.45 per kilogram or between BDT 44.68 and BDT 78.66 per pound(lb) in Dhaka and Chittagong (Chattogram).
As per the latest market rates, the average Cotton price in India is ₹6766.93/Quintal. The lowest market price is ₹3025/Quintal. The costliest market price is ₹8366/Quintal.
The retail price range for Kazakhstan cotton is between US$ 0.76 and US$ 1.21 per kilogram or between US$ 0.35 and US$ 0.55 per pound(lb). The retail price range in Tenge for cotton is between KZT 342.50 and KZT 541.93 per kilogram or between KZT 155.33 and KZT 245.77 per pound(lb) in Nur-Sultan and Almaty.
The retail price range for Kazakhstan cotton is between US$ 0.76 and US$ 1.21 per kilogram or between US$ 0.35 and US$ 0.55 per pound(lb). The retail price range in Tenge for cotton is between KZT 342.50 and KZT 541.93 per kilogram or between KZT 155.33 and KZT 245.77 per pound(lb) in Nur-Sultan and Almaty.
The retail price range for Italian cotton is between US$ 8.76 and US$ 24.35 per kilogram or between US$ 3.97 and US$ 11.04 per pound(lb). The retail price range in Euro for cotton is between EUR 8.09 and EUR 22.50 per kilogram or between EUR 3.67 and EUR 10.20 per pound(lb) in Rome and Milan.
The retail price range for Spain cotton is between US$ 3.41 and US$ 4.39 per kilogram or between US$ 1.55 and US$ 1.99 per pound(lb). The retail price range in Euro for cotton is between EUR 3.15 and EUR 4.06 per kilogram or between EUR 1.43 and EUR 1.84 per pound(lb) in Madrid and Barcelona.
The retail price range for Portugal cotton is between US$ 2.23 and US$ 5.65 per kilogram or between US$ 1.01 and US$ 2.56 per pound(lb). The retail price range in Euro for cotton is between EUR 2.06 and EUR 5.22 per kilogram or between EUR 0.94 and EUR 2.37 per pound(lb) in Lisbon and Porto.
The retail price range for Brazil cotton is between US$ 1.57 and US$ 1.65 per kilogram or between US$ 0.71 and US$ 0.75 per pound(lb). The retail price range in Brazilian Real for cotton is between BRL 7.83 and BRL 8.27 per kilogram or between BRL 3.55 and BRL 3.75 per pound(lb) in Brasilia and Rio de Janeiro.
In the United States July futures spent most of the week trying to recoup some of last week’s losses. May First Notice Day was on Wednesday, April 24, with 213 notices issued so far this month. July futures settled at 81.08 cents per pound, finishing 47 points higher for the week.
Daily volumes were lower this week when compared to last week, but total open interest managed to add 1,193 contracts to reach a balance of 202,614.
Bales eligible to deliver against futures (certificated stocks) continued to climb. They were last reported at 178,147, an increase of 5,415 from the week prior.
U.S. GDP for the first quarter came in at 1.6 percent, falling well below the 2.4 percent estimate. Major indexes reacted negatively to the U.S. GDP announcement but finished the week slightly higher than last week. U.S. jobless claims (207,000) fell to the lowest level seen since February 17, a decrease of 5,000 for the week.
U.S. inflation, as measured by the Personal Consumption Expenditures (PCE) Price Index, increased 2.7 percent from the same month one year ago. Excluding food and energy, the PCE price index increased 2.8 percent. The idea that interest rate cuts will happen in 2024 appears less likely. Despite elevated mortgage rates, new home sales were up 8.8 percent in March compared to February.
New orders for manufactured durable goods were up 2.6 in March, marking the second consecutive month with an increase. Average gasoline prices rose to $3.668 per gallon on April 22, an increase of $0.040 from the previous week. Average diesel prices declined by $0.023 to $3.992.
The U.S. Export Sales Report showed a net total of 177,100 Upland bales sold for the week ending April 18, a 21 percent increase from the previous week. The biggest buyer of Upland cotton was China, booking 94,700 bales, followed by Pakistan with 26,800 bales, and Vietnam with 14,200 bales.
Shipments totaled 261,700 bales for the week, which is above the pace typically seen at this point in the year. Above-average new crop sales of 65,700 bales were reported, with 22,000 to China, 12,100 to Honduras, and 11,000 to Turkey. A net total of 12,500 Pima bales were sold, and 10,100 bales were shipped for the week.
This week was heavy with the macroeconomic data; the next week will also be data-filled. Traders will watch the U.S. Export Sales Report and Crop Progress Report.
The Federal Open Market Committee meets on April 30 and May 1 next week. Interest rates are expected to stay the same.
Throughout the country, cotton is now 11 percent planted and 16 percent planted in Texas. Weather has been overall favorable in South Texas, helping the crop progress throughout the region. Timely rains will be welcome in the coming week to continue the season’s good start.
