Fine lint remains in focus amid firm spot rate past week
KARACHI: Buyers remained busy in dealing for fine grade in lint market that kept physical prices firm while buyers also made forward deals for all grades, traders at the Karachi Cotton Association (KCA) said on Saturday.
KCA kept the spot rate intact at Rs 5,400 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 5,600 per maund in order to capitalise maximum returns on their proceeds, floor brokers said.
Leading buyers purchased 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 made deals for fine grades on competitive price at around Rs 5,550 per maund to Rs 5,600 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,975 per maund to Rs 5,100 per maund, traders said. The textile sector is in need of fine grades, 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 5,025 per maund to Rs 5,125 per maund.
More than 6,300 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 6,000 bales out of other qualities calculating 9,900 bales past week.
New York March 2016 Futures stood at around 62.02 cents per pound, May Futures were 62.30 cents per pound and Cotlook A index was hovering around 71 cents per pound.