Daily Times

KARACHI: Leading mills and spinners made deals for better grades of lint on premium prices amid fast depleting stocks, fibre traders reported.

During the past trading week, growing demand of cloth and yarn as well as shrinking stocks of cotton put general prices of lint on a firm footing.

The Karachi Cotton Association (KCA) spot rate remained intact at Rs 6,800 per maund during a week on week basis, traders stated on Saturday.

However, the spinning sector bought cotton of all qualities. Ginners of Sindh and Punjab remained engaged in a price war owing to growing demand, according to dealers.

Private sector commercial exporters bought lint of all qualities during the past week on reports of prices to go up and shrinking stocks in the next coming weeks.

Better grades fromSindh fetched higher prices at around Rs 6,775 per maund while Punjab ginners brought out their raw quality of lint at around Rs 5,975 per maund during the trading sessions.

A senior trader, Ghulam Rabbani, revealed that during the past trading session, the market witnessed moderate trading. The spot rates of KCA remained firm, however, the KCA readjusted the physical rate by Rs 50 per maund to stay at Rs 6,800 per maund on technical grounds.

In the domestic market, cotton is being traded at a range between Rs 6,025 per maund to Rs 6,675 per maund. Leftovers are increasing every day because of buying and selections of mill representatives.

Rabbani stated that although international mill demand is somewhat spotty, the market stands firm and avoided any downside progress due to the underlying mill price fixations; as has been the case in the past few months.

The local market remained firm and witnessed active trading activity as most of the players in Sindh and Punjab consolidated their long positions.

Mr Rabbani said the local market would remain strong for another two weeks as the new crop season 2017-18 sowing was a month away.

He said the lint market was passing through a correctional phase before the prices will settle in a range between Rs 6,575 per maund to Rs 6,725 per maund.

During the past week, private sector commercial exporters also brought out cotton on competitive rates while Sindh lint dominated the volumes. On Saturday, around 900 bales changed hands. New York Futures market May 2017 closed at 75 cents per pound while July 2017 closed at 75.18 cents per pound.