Lint price remains firm amid forward deals for fine grade
KARACHI: Buyers remained busy for making deals for fine grade of lint in the market that kept physical prices steady while they also made forward deals for a month period for all grades, traders at the Karachi Cotton Association (KCA) said on Tuesday.
KCA kept the spot rate intact at Rs 5,400 per maund in order to provide support to stakeholders of raw grade to ward off minimal price level, said floor brokers.
During the trading session, spinners in Sindh and Punjab stations bought all grades while mills 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 5,675 per maund in order to capitalise maximum returns on their proceeds, floor brokers said.
The buyers with less liquidity made deals according to their immediate need of lint on back of grade issue and in anticipation of decline in spot rate, they added.
Spinners in Sindh and Punjab stations made forward deals on competitive price at around Rs 5,150 per maund to Rs 5,300 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,975 per maund to Rs 5,175 per maund, traders said.
The textile sector is eager for fine grade and that would put prices of all grade in firm frame besides its market valuation, said Shakeel Ahmad a fibre analyst.
The growers are watchful and talking all out measures to save standing crop from possible virus attack as current foggy and wet weather in cotton growing belts in Sindh and Punjab remained a threat.
In major parts of Sindh and Punjab stations buyers made forward deals for all grades for a month period at around Rs 4,975 per maund to Rs 5,200 per maund.
More than 300 bales changed hands with more than 65 percent of Punjab’s share in trading during trading.
New York March 2016 Futures stood at around 62.01 cents per pound, May Futures were 63 cents per pound and Cotlook A index was hovering around 71 cents per pound.