Overall lint price remains firm on dull volumes past week
KARACHI: Lint trading remained dull with firm physical prices while fine grades in focus besides spot rate staying in firm zone in the short past week, traders said.
The economic activities remained dull due to four days business. The ginners slowed down their deliveries in anticipating increase in prices in the near future, floor brokers said. The official spot rate remained firm at Rs 5,275 per maund, they added.
Cottonseed prices in Sindh stood around at Rs 4,950 per maund and Rs 5,025 per maund while in Punjab rates stayed at Rs 5,150 and Rs 5,175 per maund, they said.
In the ready business past week, more than 6,000 bales of cotton changed hands between Rs 4,975 and Rs 5,375 per maund, floor brokers said.
According to the lint analyst Shakeel Ahmad the mills and ginners made forward deals for all grades on less than expected crop arrival for current season.
However during past trading week, fine grade demand combined with second grade stuff for blending purposes kept physical prices in firm frame. Karachi Cotton Association (KCA) readjusted the physical rate on technical grounds by Rs 50 per maund past week in order to provide support to weak stakeholders of raw grade to ward off minimal price level, they said.
Buyers at major stations of Punjab and Sindh remained busy buying fine grades as demand of better grades was growing on back of producing better textile products while potential buyers made deals for all grades in order to fortify their inventories before shrinking fine grade lint, they added.
During trading activities sellers demanded slightly higher prices for better grades at around Rs 5,425 per maund to Rs 5,500 per maund, traders said.
During the past week arrival of better grade cottonseed in limited quantity at Punjab and Sindh stations put general prices firm, while trading remained range-bound on last trading day in all stations.
During trading sessions most of the ginning units ginned all grades as they produced more than 6,300 bales.
The New York March 2016 Futures closed at around 61 cents per pound and Cotlook A index was hovering around 70 cents per pound.