Buyers remain eager for fine lint amid firm prices
KARACHI: Trading in the cotton market remained dull with cautious note buying while prices remained under adjustment on grade supply, traders said on Friday.
Trading remained insignificant at leading centres due to non-availability of better grades besides tight arrival of fine cottonseed with liquidity problems that forced buyers to recount value before making any deal, floor brokers said.
However, in some stations in Sindh and Punjab, buyers made deals for all grades at around Rs 4,950 per maund to Rs 5,175 per maund besides buyers making forward deals for a month period at around Rs 5,100 per maund, traders said.
Demand for fine grade kept the physical prices in comfort zone, floor brokers said.
Traders in major stations of Punjab and Sindh remained grade conscious while spinners purchased fine grades besides making deals for selective lots in order to fortify inventories at around Rs 5,150 per maund. Deals also changed hands by potential buyers at around Rs 5,150 per maund to Rs 5,175 per maund, traders at Karachi Cotton Association (KCA) said.
KCA kept the spot rate after overnight correction at Rs 5,200 per maund in order to provide support to weak ginners and traders withholding raw grades for getting better prices, floor brokers said.
The sellers and buyers remained entangled in price war and buyers made deals for all grades on competitive price at around Rs 4,975 per maund to Rs 5,000 per maund, floor brokers said.
The demand by leading consumers for all grades is increasing, but grade issue would remain stand and cast some negative impact on quality in Punjab growing belt.
Slowed down purchase in anticipating better influx of cottonseed would among the issues in near future, said Shakeel Ahmad a fibre analyst.
Mills bought selective lots on grades issue at around Rs 5,025 per maund and Rs 5,050 per maund while private sector commercial exporters made deals for second grade stuff at around Rs 4,975 per maund.