KARACHI: Lint trading remained firm besides improved arrival of the commodity kept buyers on front foot. Buyers remained eager for fine grades with steady spot rate past week, traders at Karachi Cotton Association (KCA) said on Saturday.
The KCA kept the spot rate unchanged at Rs 5,600 per maund while fine grade fetched better prices at around Rs 5,675 per maund on higher demand. Trading at major stations in Punjab and Sindh remained steady on account of demand from textile and spinning sectors besides production of lint remained near the capacity in major ginning units in the country, traders said.
Improved activities in cotton growing belts also cast positive on trading, as ginning activities at the leading stations in Sindh and Punjab remained active in producing second grade stuff. Financial crunch and long-hour power and gas load shedding hampered ginning activities at some stations, said traders.
During trading sessions buyers made deals on back of shrinking stocks of all grades at around Rs 5,225 per maund to Rs 5,525 per maund in Sindh and Punjab stations. The physical price of all grades are still on firm footing as demand for cloth and yarn is on higher side from the buyers of these commodities, said Shakeel Ahmad a fibre analyst.
During past week the demand for fine lint remained on higher side and sellers withholding fine grades asked even more than Rs 5,675 per maund. During past week ginning units produced fine and other grades at around 9,300 bales besides buyers and sellers in Sindh and Punjab stations remained entangled in price war and general buyers made deals for all grades on competitive price at around Rs 4,975 per maund to Rs 4,175 per maund.
Majority of mills and spinners only made some forward deals in all grades at Rs 4,975 per maund to Rs 5,250 per maund in order to store stocks for rainy days. Besides private sector commercial exporters purchased all grades at Rs 4,975 per maund to Rs 5,000 per maund. The New York May Futures 2016 closed at around 63.45 cents per pound and Cotlook A index was hovering around 71 cents per pound.
Source: Daily Times