Daily Times

KARACHI: Buyers made selective deals on grade issue during trading at lint market while physical prices remained steady, fibre traders said.

The grade issue kept volumes thin while the leading buyers bought better grades of lint on paying premium price, traders said.

Market’s sentiments showed firmness and forward deals also changed hands above Rs 6,775 per maund, floor brokers said.

Karachi Cotton Association (KCA) kept the spot rate intact at Rs 6,300 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, buyers in Sindh and Punjab stations made deals on cautious note on grade issue while sellers offered all grades of lint at around Rs 6,000 per maund to Rs 6,700 per maund in order to capitalise maximum returns on their proceeds, floor brokers said.

Buyer remained cautious in making any big deal as they only made deals according to their immediate need of lint on back of grade issue and in anticipation of decline in spot rate, they added.

Mills in Sindh and Punjab stations purchased second grade of lint on competitive price at around Rs 6,625 per maund to Rs 6,650 per maund while secondary buyers made deals for all grades in Punjab and Sindh stations at around Rs 5,975 per maund to Rs 6,375 per maund, traders said.

The textile sector is importing better and second grade lint as it has to accomplish exports orders under Generalised System of Preferences plus status while the local stuff would be on valuation, said Shakeel Ahmad a fibre analyst.

This shows cotton import by textile sector would go up and demand for fine grades would also increase.

Due to grade issue in parts of Sindh and Punjab stations buyers made forward deals for all grades of lint at around Rs 6,400 per maund to Rs 6,575 per maund.

More than 630 bales changed hands with more than 60 percent of Punjab’s share in trading.

New York October Futures 2017 contract stood at around 72 cents per pound, December Futures 2017 contract stood at 72.65 cents per pound and Cotlook A Index was hovering around 85 cents per pound.

Published in Daily Times, August 16^th 2017.