KARACHI: Buyers bought fine grade and also made forward deals for second grade lint during trading, floor brokers said. The buyers also purchased all grade lint at around Rs 5,000 per maund to 6,425 per maund, traders at the Karachi Cotton Association (KCA) said.
KCA kept the spot rate at Rs 6,550 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 while traders offered all grades of lint on bargaining rates at around Rs 4,975 per maund to Rs 6,525 per maund in order to capitalise maximum returns on their proceeds, floor brokers said.
Buyer 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 consolidated their long positions by making deals in all grades on competitive price at around Rs 6,050 per maund to Rs 6,250 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,975 per maund to Rs 5,375 per maund, traders said.
The textile sector imported around 50,000 cotton bales of different grades to meet local output shortfall, that was casting some pressure on local ginners, said Shakeel Ahmad a fibre analyst.
Due to grade issue in parts of Sindh and Punjab stations buyers made forward deals for all grades of lint at around Rs 5,000 per maund to Rs 5,475 per maund.
More than 200 bales changed hands with more than 60 percent of Punjab’s share in trading.
New York October 2016 Futures stood at around 73 cents per pound, October Futures at 73.15 cents per pound and Cotlook A index was 0hovering around 70 cents per pound.
Source: Daily Times