Grades issue put pressure on lint price
KARACHI: Buying at lint market in Sindh and Punjab stations remained dull with easing price while buyers consolidated their long positions making forward deals for all grade, traders said.
The buyers for immediate needs made selective deals, traders at Karachi Cotton Association (KCA) said on Monday.
Dull demand for all grades in Punjab and Sindh stations kept the physical prices of lint in the pressure while KCA kept the spot at Rs 5,200 per maund in order to provide support to raw grade sellers for getting better prices, floor brokers said.
In Sindh physical buying remained dull while forward deals for a month period changed hands between buyers and sellers at Rs 5,125 per maund to Rs 5,150 per maund, floor brokers said.
The buyers made deals for all grades to cater immediate need while ginning units produced second grade stuff more than 3,300 bales, said floor brokers.
Availability of fine grade in some stations of Punjab and Sindh remained thin however it fetched better price at around Rs 5,650 per maund to Rs 5,675 per maund.
Leading and general buyers kept their eyes on better grades and physical trading volumes in third grade remained dull, floor brokers said.
Any upward revision in spot rate would provide better returns to growers withholding low grades and this would also help to boost overall prices especially of lower grades, said Shakeel Ahmad an analyst.
During the trading session, spinners in Punjab and Sindh stations bought all grades besides mills purchased all grades at around Rs 5,125 per maund to Rs 5,175 per maund, floor brokers said.
General buyers made deals for all grades on competitive prices at around Rs 4,975 per maund to Rs 5,050 per maund while buyers with less liquidity made deals in all grades in Punjab and Sindh stations at around Rs 4,900 per maund depending on trash level, traders said.
More than 300 bales changed hands with more than 65 percent of Punjab’s share in trading.
New York December 2015 Futures stood at around 61.95 cents per pound and Cotlook A index was hovering around 70 cents per pound.