Fine lint remains in demand amid firm spot rate past week
KARACHI: Buyers made deals in fine grade to consolidate their long positions in the lint market that kept physical prices firm while leading buyers made a month period forward deals for all grades, traders at the Karachi Cotton Association (KCA) said on Saturday.
KCA kept the spot rate intact at Rs 5,450 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level, said floor brokers.
During the trading session, mills and spinners in Sindh and Punjab stations purchased all grades while buyers for blended purpose made deals for fine lots on slightly higher price. Traders offered all grades of lint on bargaining rates at around Rs 4,975 per maund to Rs 5,575 per maund in order to capitalise maximum returns on their proceeds, floor brokers said.
Leading buyers made deals according to their immediate need of lint on back of grade issue and in anticipation of decline in spot rate past week, they added. Mills in Sindh and Punjab stations bought fine grades on competitive price at around Rs 5,550 per maund to Rs 5,625 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,975 per maund to Rs 5,150 per maund, traders said.
The textile sector is eager for fine grades to meet better grade end products, that would put positive impact on prices besides its market valuation, said Shakeel Ahmad a fibre analyst.
The current weather in cotton growing belts in Sindh and Punjab remained suitable for standing crop. The shortage of energy to textile sector was still endangering cotton growers’ selling volumes. In major parts of Sindh and Punjab stations buyers made forward deals for all grades for a month period at around Rs 5,000 per maund to Rs 5,125 per maund.
More than 9,000 bales changed hands with more than 65 percent of Punjab’s share in trading during past week. Ginning units produced second grade stuff at around 3,600 bales out of other qualities calculating 9,900 bales past week. New York March 2016 Futures stood at around 62.89 cents per pound, May Futures were 62.28 cents per pound and Cotlook A index was hovering around 71 cents per pound.