KARACHI: Buyers made deals for all grades amid firm physical price during trading session at lint market on Wednesday, floor brokers said. Fresh selling in fine grades remained underdog with slower influx of fine grades while buyers remained engaged in price war with sellers on second grade, dealers said.
The majority of the ginning units were producing second grades in abundance on future demand while production of fine grade remained slow on dull pace of fine cottonseed arrival. Ginners produced second grade bales to around 9,000 bales out of the total output of 12,900 bales, traders said.
Mills and spinners made deals for all grades with cautious note while some buyers involved in consolidating their long positions by making deals in all grades, said floor brokers. The cotton price stayed stable during the trading session and around 3,600 bales of upper Sindh and Southern Punjab changed hands.
The Karachi Cotton Association (KCA) readjusted physical spot rate upward by Rs 50 per maund to Rs 5,350 per maund, the dealers said. Traders said the spinners also made deals for quality cotton on slightly higher price at around Rs 5,725 per maund while the leading sellers sensing future demand of quality lint offered fewer stocks on higher prices to the buyers.
Ghulam Rabbani, a senior trader at KCA said the domestic buyers were forced accepting a bit higher price on their end-products demands while the leading users purchased around 300 bales at around Rs 5,650 per maund during the session.
The buyers would remain eager to purchase quality lint on slightly higher prices on the back of growing demand of clothes. The sellers of Punjab offered cotton of all grades to the buyers around Rs 5,050 per maund to Rs 5,425 per maund while ginners of Sindh offered low-grade lint to the buyers around Rs 4,575 per maund. New York Cotton December future closed slightly improved at 60.89 cents per pound and March future 2016 closed at 61.61 cents per pound.
News source: Daily Times