Daily Times

KARACHI: Buyers made deals on selective note depending on grade issue during trading session with firm physical prices at lint market.

Grade issue kept the leading buyers to make cautious deals while market’s sentiments remained steady.

Forward trading for a month period also took place, traders at Karachi Cotton Association (KCA) said.

KCA kept the spot rate intact at Rs 7,000 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level.

During the trading session, buyers in Sindh and Punjab stations made deals for lint on cautious note while sellers offered second grade of lint at around Rs 6,900 per maund to Rs 7,225 per maund on increasing demand and in order to capitalise maximum returns on their proceeds.

Buyer remained cautious in making any big deal as they only made deals according to their immediate need of lint in anticipation of decline in spot rate.

Mills and spinners in Sindh and Punjab stations made deals for better grades on competitive price at around Rs 6,950 per maund to Rs 7,200 per maund while secondary buyers made deals for all grades in Punjab and Sindh stations at around Rs 5,975 per maund to Rs 6,525 per maund.

The textile sector is facing high cost of doing business and power load shedding that puts industrial activity dull.

Importing better and second grade of lint is still in the limelight as it has to accomplish exports orders while domestic fine stuff on shrinking that would helpful on valuation.

More than 900 bales changed hands with more than 60 percent of Punjab’s share in trading.

New York March Futures 2018 contract stood at around 83 cents per pound. May Futures 2018 contract at 83.70 cents per pound and Cotlook A Index was hovering around 91 cents per pound.

Published in Daily Times, February  20th  2018.