Lint trading remains moderate with firm spot rate
KARACHI: Traders remained busy in price war while better grade kept the physical prices steady besides forward deals for better grade on slightly higher price changed hands, traders at the Karachi Cotton Association (KCA) said on Friday.
KCA kept the spot rate intact at Rs 5,400 per maund in order to provide support to weak holders of raw grade to ward off minimal price level, said floor brokers.
During the trading session, buyers in Sindh and Punjab stations made deals for all grades while sellers 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, they added. Spinners in Sindh and Punjab stations bought fine grades on competitive price at around Rs 5,575 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 5,200 per maund, traders said.
The textile products export units are facing dearth of fine grades, that would put positive impact on prices besides its market valuation, said Shakeel Ahmad a fibre analyst. The growers are busy in scouting the standing crop and weather in cotton growing belt in Punjab and Sindh remained suitable. The shortage of energy to ginning and textile sectors was still endangering growers’ selling volumes.
Due to grade issue in parts of Sindh and Punjab stations buyers also made forward deals for all grades of lint at around Rs 4,975 per maund to Rs 5,325 per maund. More than 200 bales changed hands with more than 65 percent of Punjab’s share in trading.
New York March 2016 Futures stood at around 62.45 cents per pound, May Futures stood at 62.82 cents per pound and Cotlook A index was hovering around 71 cents per pound.