Pakistan cotton market with pick up in seedcotton arrival to resume normal pace

Cotton market in Pakistan witnessed stable and steady condition over decline reported in the arrivals of seedcotton (Kapas /Phutti) into the ginning factories over the last week or ten days. However, early next week, with the pick up of seedcotton arrivals, market to resume normal pace due to which both in Sindh and Punjab the ginning operation will also gain speed, as per traders.

Seedcotton prices in Sindh generally ranged from Rs 2300 to Rs 2350 per 40 Kgs, as per quality, while in the Punjab it ranged from Rs 2100 to Rs 2325 per 40 Kgs on Thursday. Lint prices were said to have ranged from Rs 4600 to Rs 4625 per maund (37.32 Kgs) in Sindh, while in the Punjab they reportedly ranged from Rs 4600 to Rs 4650 per maund, according to the quality.

In ready cotton business reported on Thursday, 400 bales from Moro in Sindh reportedly sold at Rs 4600 per maund (37.32 Kgs), while 400 bales from Nawabshah, 800 bales from Shahdadpur, 1000 bales each from Sanghar and Tando Adam all reportedy sold at Rs 4600 / Rs 4625 per maund in a well held market.

In the Punjab, 600 bales of cotton from Burewala were said to have been sold at Rs 4600 per maund (37.32 Kgs), 600 bales from Khanewal sold at Rs 4600 / Rs 4650 per maund, while 1000 bales from Mian Chunnu sold at Rs 4625 / Rs 4650 per maund.

According to the recent report of the Pakistan Cotton Ginners Association (PCGA), seedcotton for 1,339,990 lint equivalent bales (155 Kgs) arrived into the ginning factories till the 1st of September, 2015. From this figure, the domestic mills were said to have lifted 1,029,690 bales, while the exporters picked up 92,420 bales. Total unsold stock lying with the ginners was said to be 217,880 bales. Besides the mills, exporters were also active in purchasing cotton in the domestic market.

Yarn prices were not performing well in the domestic market and global markets were also reportedly weak. Domestic textile activity therefore remains dull and negative except for some of the larger groups who are performing well.

According to the traders, this years Pakistan cotton crop (August 2015) will range from 14 to 14.5 million domestic size bales (155 Kgs). Domestic mills will reportedly use 14.75 to 15.25 million bales while imports of cotton are projected at about one million bales where as the exporters could ship nearly 750,000 bales.

On the global font, international cotton prices not doing well as no demand appears to be in hand. Recently, cotton prices was reported to have remained under pressure. The demand of cotton from the spinning sector remains on the weak side.