Daily Times

KARACHI: Cotton trading at major Punjab and Sindh stations remained range-bound on quality issues while buyers made sizeable deals for second grade of cotton.

Shrinking better stocks of lint kept quality conscious buyers make deals to consolidate their long positions during trading session in Punjab and Sindh. Leading buyers bought better grades of lint on premium prices to strengthen their inventories while mills made forward deals during trading session in Sindh and Punjab stations.

Physical prices remained firm for all grades of cotton that kept market’s sentiments positive while bottom line prices stood steady. Buyers also made forward deals for second grade of lint at around Rs 6,525-Rs 6,550 per maund. Demand for better grades of cotton would remain on the higher side in coming trading sessions as mills and spinners would stockpile better grades for producing end-products and blending purposes, experts said. Arrival of better cottonseed at the ginneries would likely keep general prices in some depression. Import price parity was in favour of imports as the commodity would cost around Rs 6,000 per maund, they said.

Secondary buyers bought all grades of lint at around Rs 6,000-Rs 6,250 per maund.

Sellers withholding better grades of lint remained in the driving seat as stocks of better grades of lint were shrinking.

Buyers made one month forward deals at around Rs 6,250-Rs 6,300 per maund. Paucity of better grades kept buyers selective while sellers kept maintaining their price level on the higher side on shrinking of better grades at the ginneries.

Private sector commercial exporters made deals at Rs 6,000-Rs 6,225 per maund.

Raw grades of lint changed hands at Rs 5,975 per maund, depending on trash level during trading session.

Around 3,900 cotton bales changed hands while ex-gin price remained firm at Rs 6,450 per maund.

In kerb market, trading took place in the range of Rs 6,125-Rs 6,150 per maund.

New York Cotton December Futures 2017 contract closed at around 69.09 cents per pound, March Future 2018 contract at 69.18 cents per pound and Cotlook A Index was hovering at 81cents per pound.

Published in Daily Times, November 18^th 2017.