Stability in cotton rates prevailed in the Pakistani market last week. The spot rates remained unchanged in the Karachi and Punjab markets, the 37.5 kg prices ranged from Rs19000 to Rs2300 in Karachi and from Rs19500 to Rs22000 in Punjab.
It is interesting to note that though the price of cotton was higher in Sindh, the rate of Phutti in Sindh was higher than in Punjab. Phutti was sold in Sindh between Rs 6,500 to Rs 9,500 per 40 kg. The rate of Phutti in Punjab ranged between Rs 7,500 to Rs 10,500 per 40 kg.
On Thursday, February 9, 400 bales of Sargodha were sold at Rs 21,500 per 37.5 kg, 400 bales of Kot Bangalow were bought at Rs 20,500 per 37.5 kg, 200 bales of Kumb were disposed at Rs 20,000 per maund, 400 bales of Ghazi Ghat fetched Rs 22,700 per 37.5 kg, 800 bales of Marrot were purchased at Rs 22,000 per 37.5 kg, 3400 bales of Fort Abbas were sold at Rs 22,000 per 37.5, 400 bales of Yazman Mandi were disposed at Rs 21,800 per 37.5 kg and 200 bales of Haroonabad fetched Rs 20,500 per .37.5 kg. Polyester Fiber was offered at Rs 340 per kg.
Elsewhere in the world the cotton rate in India the average price was INR7637.43/Quintal. The lowest market price was INR500.00/Quintal. The most expensive market price was INR9196.00/Quintal. In 2023, the approximate price range for Australia Cotton is between US$ 2 and US$ 2.01 per kilogram or between US$ 0.91 and US$ 0.91 per pound(lb). In 2023, the approximate price range for Australia Cotton is between US$ 2 and US$ 2.01 per kilogram or between US$ 0.91 and US$ 0.91 per pound(lb).
The price in Australian Dollars is AUD 2.58 per kg. The average price for a tonne is US$ 1999.25 in Melbourne and Canberra. In 2023, the approximate price range for Brazil Cotton is between US$ 1.62 and US$ 1.71 per kilogram or between US$ 0.73 and US$ 0.78 per pound(lb). The price in Brazilian Real is BRL 8.88 per kg. The average price for a tonne is US$ 1620.8 in Rio de Janeiro and Brasilia. In 2023, the approximate price range for China Cotton is between US$ 1.68 and US$ 1.9 per kilogram or between US$ 0.76 and US$ 0.86 per pound(lb).
In the United States market, March futures had a mixed week, remaining in the back-and-forth trading range that has been present for the past few months. Overall, most commodities had a good start to the week, with cotton, in particular, finding support from China. After falling under pressure from the Fed’s interest rate increase that was announced later in the week, the U.S. Export Sales Report helped boost prices to finish the week on a high note. March futures closed at 86.39 cents per pound, down 111 points for the week ending February 2. Open interest rose modestly, increasing 1,043 contracts for a total of 210,416.
Although the Fed is hopeful the disinflationary process has started, there will likely be more rate increases in the coming months and it is still unclear whether cuts will happen before the year ends. The speculation of a possible end to interest rate hikes and positive corporate gains from companies helped keep a bullish narrative in the market.
Non-farm productivity rose more than expected at 3%, while labor costs in the fourth quarter rose less than expected at 1.1 percent, both readings helping add to gains in Indexes despite weekly unemployment claims falling to a 9-month low of 183,000. The Dollar Index, however, did not fare as well with the economic news this week and hit a 9-month low on Wednesday, but recovered some of the losses to close out the week.
The Export Sales Report showed stronger than anticipated sales for the week ending January 26. It was unclear what would happen for the week since much of Southeast Asia was on holiday. While sales were down from the week prior, net sales were still encouraging, with a total of 171,200 Upland bales booked for the week. China was the biggest buyer with 119,800 bales purchased for the week.
Turkey and Indonesia followed by purchasing 44,000 bales and 8,800 bales, respectively. Shipments continue to increase, with a total of 212,200 bales exported for the week. While still below the pace needed to reach the USDA’s export estimate, it is slowly catching up to what is needed. The 2023/24 crop year reported net sales of 20,200 bales. Pima had a disappointing week of sales, showing net sales reductions of 800 bales for 2022/23 and net sales of 2,400 bales for 2023/24. However, shipments increased substantially, with 7,800 bales being exported for the week.
