KARACHI: Buyers remained selective on grade issue besides spot rate remained under correction on technical ground and closed firm on last trading day. Buyer made forward deals in fine grade to consolidate their long positions in lint market, traders at the Karachi Cotton Association (KCA) said on Saturday. KCA kept the spot rate at Rs 5,300 per maund after Rs 50 per maund upward readjustment in order to provide support to weak stakeholders of raw grade to ward off minimal price level, said floor brokers.
During the trading session, leading buyers in Sindh and Punjab stations made deals for all grades while buyers for blending purpose made deals for fine lots on slightly higher price. Traders offered all grades of lint on bargaining rates at around Rs 4,975 per maund to Rs 5,400 per maund in order to capitalise maximum returns on their proceeds, floor brokers said.
Buyers with less liquidity made deals according to their immediate need of lint on back of grade issue and in anticipation of decline in spot rate past week, they added. Spinners in Sindh and Punjab stations purchased fine grades on competitive price at around Rs 5,550 per maund to Rs 5,575 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,975 per maund to Rs 5,200 per maund, traders said.
The textile sector is eager for fine grades to meet better grade end products, that would put positive impact on prices besides its market valuation, said Shakeel Ahmad a fibre analyst.
The current weather in cotton growing belts in Sindh and Punjab remained suitable for standing crop.
In major parts of Sindh and Punjab stations buyers made forward deals for all grades for a month period at around Rs 5,025 per maund to Rs 5,100 per maund. More than 9,900 bales changed hands with more than 65 percent of Punjab’s share in trading during past week.
Ginning units produced second grade stuff at around 3,900 bales and fine grades around 1,500 bales past week. New York March 2016 Futures stayed at around 58.31 cents per pound, May Futures were 57.89 cents per pound and Cotlook A index was hovering around 70 cents per pound.