KARACHI: Buying in the lint market kept prices firm while grade-conscious buyers made deals at slightly higher price, traders at the Karachi Cotton Association (KCA) said.
KCA kept the spot rate intact at Rs 6,375 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 in Sindh and Punjab stations purchased all grades on a cautious note as grade issue has continued. Traders offered all grades of lint on competitive rates at around Rs 5,975 per maund to Rs 6,575 per maund in order to capitalise maximum returns on their proceeds, floor brokers said.
Leading buyers bought all grades of lint according to their immediate need on the back of the grade issue and in anticipation of decline in spot rate, they added.
Spinners in Sindh and Punjab stations made 1-month forward deals for fine grades on competitive price at around Rs 6,550 per maund to Rs 6,575 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 5,975 per maund to Rs 6,150 per maund, traders said.
The textile sector is facing dearth of fine grades, that would put positive impact on prices besides its market valuation, said Shakeel Ahmad a fibre analyst.
The recent weather in the cotton growing belt in Punjab remained suitable for the standing crop. The shortage of energy tothe textile sector was still endangering cotton growers’ selling volumes.
Due to the grade issue, in parts of Sindh and Punjab stations, buyers made forward deals for all grades of lint at around Rs 6,150 per maund.
More than 690 bales changed hands with more than 65 percent of Punjab’s share in trading.
New York March 2017 Futures stood at around 72.12 cents per pound, May 2017 Futures at 72.39 cents per pound and Cotlook A index was hovering around 70 cents per pound.