Lint remains attractive amid forward deals
KARACHI: Buyers made forward deals in all grades at the lint market as prices remained attractive for buyers while they also made deals for second grade stuff, 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 blending 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 5,625 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 5,075 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 5,225 per maund, traders said.
The textile sector is eyeing on the stocks of fine grade that were on shrinking besides leading stakeholders manipulating market valuation, said Shakeel Ahmad a fibre analyst. The growers are taking all possible measures to save standing crop from possible virus attack as current fog and wet weather condition 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 360 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 cents per pound, May Futures stood at 62.39 cents per pound and Cotlook A index was hovering around 70 cents per pound.