KARACHI: Selective buying in lint market kept physical prices within reach of buyers while grade-conscious buyers made deals on slightly higher price, traders at the Karachi Cotton Association (KCA) said on Wednesday.
KCA after readjusting the spot rate kept it at Rs 5,350 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level, said floor brokers. During the trading session, spinners in Sindh and Punjab stations bought all grades on cautious note as grade issue was continued.
Traders offered all grades of lint on bargaining rates at around Rs 4,975 per maund to Rs 5,425 per maund in order to capitalise maximum returns on their proceeds, floor brokers said. Leading buyer remained cautious and only made deals according to their immediate need of lint on back of grade issue and in anticipation of decline in spot rate, they added.
Mills in Sindh and Punjab stations purchased fine grades on competitive price at around Rs 5,575 per maund to Rs 5,600 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,975 per maund to Rs 5,125 per maund, traders said.
The textile sector is facing dearth of fine grades, that would put positive impact on prices besides its market valuation, said Shakeel Ahmad a fibre analyst. The recent weather in cotton growing belt in Punjab remained suitable for standing crop.
The shortage of energy to textile sector was still endangering cotton growers’ selling volumes. Due to grade issue in parts of Sindh and Punjab stations buyers made forward deals for all grades of lint at around Rs 4,975 per maund to Rs 5,150 per maund. More than 300 bales changed hands with more than 65 percent of Punjab’s share in trading. New York March 2016 Futures stood at around 59.75 cents per pound, May Futures closed at 60.40 cents per pound and Cotlook A index was hovering around 70 cents per pound.
Source: Daily Times