KARACHI: The volumes of lint increased amid spot rate under adjustment besides physical price remained within the reach of buyers on back of growing demand during week on week basis, traders at Karachi Cotton Association (KCA) said Saturday.
They said leading buyers bought lint of all qualities on slightly higher price above spot rate during six trading sessions and market volumes also showed 10 percent increase to 3,000 bales compared to last week.
A senior trader of KCA, Ghulam Rabbani said spot rate at KCA remained under correction and the settlement declared at Rs 5,500 per maund while fine lint fetched over Rs 5,625 per maund. He said Trading Corporation of Pakistan (TCP) remained supportive to secure interest of sellers and ginners during trading at Karachi cotton market.
The TCP did not offer its stocks in the market in order to provide an opportunity to sellers to capitalise maximum, on their deals. He said domestic cotton prices were cheaper than the import price parity to dollar and fine lint remained in focus on back of growing demand by leading mills and spinning units in the country.
He said the market sentiments stood on stronger side due to upward trend in New York Cotton Market besides TCP’s supportive role. He said private sector commercial exporters also consolidated their long position and bought lint of all qualities during the trading sessions.
He said fine lint has become rare and price would go further higher of all grades despite the fact that imports order around one million bales were still intact. On Saturday, in the domestic market around 100 bales of Sanghar changed hands at Rs 5,250 per maund, 100 bales of Rahimyar Khan at Rs 5,100 per maund, 100 bales of Liaqatpur at Rs 5,000 per maund, 100 bales of Hasilpur at Rs 5,000 per maund and 100 bales of Channi Goth were sold at Rs 4,950 per maund.
International market: New York futures market July 2016 closed at 64.60 with a gain of 29 points and the volume traded was 9,130 contracts, the October 2016 closed at 64.27 cents per pound with a gain of 33 points and the volume traded under October cover was 4 contracts.
While the December 2016 closed at 63.36 cents per pound with a gain of 31 points and the trading volume was 3,000 contracts. The Cotlook A index was settled at 69.54 cents per pound with an increase of 15 points.
Source: Daily Times