KARACHI: Cotton trading in Sindh and Punjab stations remained selective on grade issue with moderate volumes and higher demand for fine grades while second grade volumes remained high, dealers said.
The ginning activities at most of the units remained firm while absence of fine grade stuff pushed its price on firm footing, said traders.
Leading and general buyers remained busy making deals in all grade in major Punjab stations that kept trading moderate at most of the stations and traders at Karachi Cotton Association (KCA) also made sizeable deals during trading activity.
Tight cottonseed arrival to ginneries due to shrinking stocks and slower arrival of fine grades kept trading in Punjab and Sindh stations selective besides prices of all grades remained at the hands of sellers on back of shrinking stocks.
KCA kept the spot rate at Rs 5,300 per maund in order to provide support to raw grade sellers for getting better prices, floor brokers said.
During the trading session, spinners made deals for fine stocks at Rs 5,650 per maund to Rs 5,675 per maund while mills bought fine grades for immediate use at around Rs 5,600 per maund, floor brokers said.
Grade issue would remain intact, while weather is suitable for standing crop besides cottonseed would not be in plenty however some stations were producing fine grade cottonseed in limited quantity, said Shakeel Ahmad a fibre analyst.
General buyers made deals for all grades on competitive prices at around Rs 4,975 per maund to Rs 5,025 per maund while buyers with less liquidity made deals in all grades in Punjab stations at around Rs 4,975 per maund, he said.
The domestic fine lint prices are on higher side due to demand and international price parity that does not allow import of the commodity,
Private sector commercial exporters bought all grades at around Rs 4,975 per maund to Rs 5,000 per maund in order to fortify their long positions in anticipation of increase in prices in the next coming trading sessions.
Source: Daily Times