KARACHI: Leading users remained busy in making deals for lint of all qualities on slightly higher prices amid firm spot rates during the past trading week at the Karachi Cotton Market, dealers said.
The Karachi Cotton Association (KCA) spot rate stayed stable at Rs 5,200 per maund with moderate volumes, while majority of the deals for fine lint changed hands between leading mills and ginners of Sindh and Punjab.
Brokers said ginners of Sindh and Punjab remained engaged in price war with the buyers on issue of fine lint besides growing demand of the produce kept market sentiments on moderate side despite shrinking domestic stocks. The ginners of Punjab and Sindh offered lots around Rs 5,000 per maund and Rs 5,125 per maund to the buyers, while Punjab ginners offered their raw produce on competitive prices during the past week.
The quality lint of Punjab fetched above Rs 5,500 per maund while the poor cotton of Punjab was traded around Rs 4,900 per maund and Rs 4,925 per maund for most of the trading sessions. A senior trader, Ghulam Rabbani said market sentiments remained positive during past week, while ginners withholding fine lint were confident that the spot rates would go further up after some recession in coming days.
He said market players demanded of the government to invite international experts on cottonseed in order to develop better seed domestically besides enhancing yield acreage to avoid huger imports. He said quality was becoming rare now and the millers, in need of good quality cotton were making all the possible efforts to find and cover their needs.
Mr Rabbani said the international market was likely to stay range-bound as we were heading into the March notice period. However, with higher inflation looming, cotton prices should continue to move higher over the longer term on domestic and international front. On Saturday, the last trading day of the week, the spot rate remained firm and spinners made some deals of fine lint above Rs 5,400 per maund.
In the domestic market 200 bales of Multan at Rs 5,200 per maund, 100 bales at Rs 5,300 per maund and 100 bales of Sanghar at Rs 5,250 per maund changed hands. Last night in New York futures market, March 2016 closed at 59.89 cents per pound, while May closed at 59.70 cents per pound. The Cotlook A index settled at 70 cents per pound.
Source: Daily Times