Lint trading continues dull on grade concerns
KARACHI: Trading activity remained dreary at the lint market on grade issues and buyers were reluctant to make any sizeable deal though price was low, floor brokers said.
However buyers made deals for all grades of lint to meet immediate need and around 200 bales changed hands. The Karachi Cotton Association (KCA) spot rate remained firm at Rs 5,300 per maund. Brokers said buyers also made forward deals for a month period in quality lint on slightly higher prices at around Rs 5,650 per maund during the trading session. A senior trader, Ghulam Rabbani said growers with fine stocks remained in driving seat as the crop output for 2016 was down by 3.5 million bales to the target of 15.20 million bales.
The quality lint was depleting and price war on second grade cotton was continued. Buyers bought all the grades at around Rs 5,050 per maund to Rs 5,475 per maund to cater their immediate blending need. The dull trade was attributed to decline in the off-take of cotton yarn due to slow demand from China from Pakistani yarn makers, dealers said. The cotton market is likely to maintain the sluggish trade, as international big buyers were not interested in commercial activity.
The volumes were slow with traders purchased just 200 cotton bales in the ready market of Sindh and Punjab at Rs 4,950 per maund to Rs 5,450 per maund. The ginning units kept maintaining quality, as textile sector was in need of better grades of lint for end-product export orders.