Daily Times

KARACHI: Buyers remained reluctant to make sizeable deals on grade issues and in anticipation of easing of prices in the upcoming trading sessions. Better grade of lint kept the physical prices firm while trading volumes in second grade of cotton remained on the higher side during trading session in major stations of Punjab and Sindh.

Buyers bought commodity on premium price and spinners consolidated their inventories in anticipating paucity in coming trading sessions at lint market.

Buyers bought commodity on slightly higher price at around Rs 7,700 per maund to Rs 7,725 per maund during trading session at Punjab and Sindh stations.

The physical prices would likely to remain firm on shrinking of better grades while arrival of phutti (cottonseed) in ginneries would stand normal. Buyers made forward deals for a month period at around Rs 6,575 per maund and Rs 6,600 per maund in anticipation of paucity of better grades.

Around 3,600 bales changed hands while spot rate at Karachi Cotton Association (KCA) remained firm at Rs 7,500 per maund.

Anticipating demand of end products and textile made ups from foreign buyers would keep prices of better grades of cotton in green.

Spinners were in need of better grades of cotton to cater quality end products in backdrop of sizeable orders in international Frankfurt textile fair.

The market prices are still in firm zone and buyers with liquidity are consolidating their long positions in making deals for fine lots.

According to KCA, 200 bales of Sanghar changed hands at Rs 6,725 per maund, 200 bales of upper Sindh at Rs 7,000 per maund, 200 bales of southern Punjab at Rs 7,450 per maund and 200 bales of Multan at Rs 7,025 per maund.

The ginners of Punjab and Sindh offered cotton of all grades to buyers around Rs 6,650 per maund to Rs 7,700 per maund while ginners of Sindh offered raw-grade lint to the buyers around Rs 6,000 per maund, depending on trash level.

New York Cotton March Future 2018 contract closed at 82 cents per pound and May Future 2018 contract closed at 82.08 cents per pound. Cotlook A Index was hovering at around 86 cents per pound.

Published in Daily Times, January 21^st 2018.