KARACHI: Cotton prices remained strong with higher demand for better grades, fibre traders said. More than 3,000 bales of better quality changed hands. The Karachi Cotton Association (KCA) spot rate stood firm at Rs 6,800 per maund.
Floor brokers said the leading buyers bought quality lint on paying premium price above Rs 6,850 per maund during the trading session. The spinners bought second grade of lint for blending purpose on slightly higher rates at around Rs 6,675 per maund while mills in Sindh and Punjab stations strengthened their long positions by striking forward deals on one-month delivery period, brokers said. Better and second grades of lint are fetching premium prices on fast shrinking while raw grade of lint changed hands at Rs 6,000 per maund, depending on trash level, floor brokers said. The physical market prices would remain stand between Rs 6,550 per maund and Rs 6,625 per maund. A senior trader and fibre analyst, Shakeel Ahmad said the private sector exporters had brought out their better grades in the market on higher priuces.
The fine stocks of past crop season are also fetching better prices above Rs 6,800 per maund. He said ginneries in Sindh and Punjab have geared up their ginning activities in order to meet the growing demand. He said cotton prices were expected to increase by around 10 percent in open market, as cotton demand would increase. According to KCA, 200 bales of Hasilpur changed hands at Rs 6,525 per maund, 100 bales of Multan at Rs 6,500 per maund, 200 bales of Sanghar at Rs 6,800 per maund, 200 bales of Rahimyar Khan at Rs 6,800 per maund and 200 bales of Bahawalnagar changed hands at Rs 6,550 per maund. New York July Futures 2017 contract closed at 77 cents per pound and October Futures 2017 contract closed at 78 cents per pound. Cotlook A Index closed at 87 cents per pound.