KARACHI: Buyers in lint market remained quality cautious that kept the physical price low while prices attracted buyers with less liquidity, traders at the Karachi Cotton Association (KCA) said on Tuesday.
KCA after some readjustment in 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, mills in Sindh and Punjab stations made deals for 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 5,450 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 and in anticipation of further decline in spot rate, they added.
Spinners in Sindh and Punjab stations bought fine grades on competitive price at around Rs 5,575 per maund to Rs 5,625 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,975 per maund to Rs 5,100 per maund, traders said.
The textile sector is facing the dearth of fine grades, that would put a positive impact on prices besides its market valuation, said Shakeel Ahmad a fibre analyst. The recent weather in the cotton growing belt in Punjab remained suitable for standing crop. The shortage of energy to the 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 5,125 per maund. More than 200 bales changed hands with more than 65 percent of Punjab’s share in trading. New York March 2016 Futures stood at around 59.72 cents per pound, May Futures closed at 60 cents per pound and Cotlook A index was hovering around 70 cents per pound.
Source: Daily Times