KARACHI: Trading at lint market remained selective on grade issue with firm prices while buyers made forward deals for better grades on slightly higher price during trading sessions past week, floor brokers said. Buyers made deals on back of grade issue at around Rs 5,625 per maund to Rs 5,675 per maund, traders said on Saturday.
The economic activities at ginneries as well as major stations remained firm on back of growing demand of all grades of lint. Sellers withholding second grade stuff at main stations of Punjab and Sindh asked above Rs 5,475 per maund for the commodity while majority of the ginneries remained active producing second grade stuff on back of improved demand, traders said.
Prices remained within the reach of buyers with some cautious activity, floor brokers said. The Karachi Cotton Association (KCA)’s spot rate remained firm to stay at Rs 5,550 per maund, they added. During past week buyers also made deals for lower grades on cautious note at around Rs 4,950 per maund to Rs 4,975 per maund besides demand for fine grades remained higher, floor brokers said.
During trading past week spinners and mills made deals for all grade while potential buyers remained selective due to shrinking of better grade, floor brokers said. Price firmness of cottonseed would provide an opportunity to the ginners to fetch better price of end product, but most of them would prefer to negotiate on normal terms in coming days, floor brokers added.
Prices of better grade cotton would likely to stay in next sessions at around Rs 5,675 to 5,700 per maund, as most of the leading ginners would bring out stockpile of better grades, said Shakeel Ahmad a fibre expert. During trading sessions most of the medium sized ginning units (18) ginned all grades as they produced more than 15,000 bales. The New York July 2016 closed at around 64.11 cents per pound and Cotlook A index was hovering around 70 cents per pound.
Source: Daily Times