Fine lint remains in demand amid firm price
KARACHI: Lint trading in Sindh and Punjab stations stood firm with fine lint in focus and firm spot rate, traders at Karachi Cotton Association (KCA) said on Friday. The influx of all grades in the market lured buyers to make deals on slightly higher rates that kept market price in comfort zone.
Most of the buyers remained busy in price war however they made deals for immediate need for all grades on cautious note, floor brokers said. Grade issue put sellers and buyers in price war while second grade demand remained on higher side that put positive impact on trading, said floor brokers.
The fact track picking of cottonseed influenced trading and most of the ginning units produced 80 percent of the second grade stuff to 9,900 bales, said floor brokers. Arrival of moderate volumes of cottonseed in some sites in Punjab and Sindh stations put some positive impact on general prices.
Leading and general buyers remained eager for better grades and physical trading volumes in second grade remained on the higher side, floor brokers said. Fine grades stocks in Punjab stations kept the prices within buyers’ reach while KCA kept overnight spot rate intact at Rs 5,250 per maund in order to provide support to raw grade sellers for getting better prices, floor brokers said.
Domestic lint prices would remain on firm footings while buyers were still looking for better grades. However growers remained busy in picking, said Shakeel Ahmad an analyst.
During the trading session in Punjab and Sindh stations spinners purchased all grades at Rs 5,475 per maund to Rs 5,525 per maund besides mills bought all grades at around Rs 5,350 per maund to Rs 5,475 per maund, he said. General buyers made deals for all grades on competitive prices at around Rs 4,575 per maund to Rs 4,675 per maund while buyers with less liquidity made deals in all grades in Punjab and Sindh stations at around Rs 4,525 per maund.
More than 900 bales changed hands with more than 65 percent of Punjab’s share in trading. New York March 2016 Futures stood at around 63.40 cents per pound and Cotlook A index was hovering around 70 cents per pound.