Daily Times

KARACHI: Trading stood firm on back of demand for fine and second grade of lint besides buyers made forward deals in all grades that kept market sentiments in green past week, traders at Karachi Cotton Association (KCA) said on Saturday. The KCA kept making adjustments in spot rate that stayed at Rs 6,800 per maund while fine grade fetched premium prices at around Rs 6,825 per maund on higher demand. Garment made up sector is remained in need of better grade of lint. Buyers at major stations in Punjab and Sindh remained grade conscious on account of orders for quality end-products while production of lint remained high in major ginning units in the country, traders said. Activities in cotton growing belts remained moderate and ginning activities remained normal at leading stations in Sindh and Punjab stations. Financial crunch and long-hour power and gas interruption has been hampering ginning activities at some stations, said traders. During trading sessions buyers made deals on back of shrinking stocks of better grades at around Rs 6,675 per maund to Rs 6,750 per maund in Sindh and Punjab stations. The physical price of all grades are still on firm footing as demand for cloth and yarn is on higher side from the buyers of these commodities, said Shakeel Ahmad a fibre analyst. During past week the demand for better lint remained on higher side and sellers withholding fine grades asked above Rs 6,800 per maund. During past week ginning units produced fine and other grades at around 12,000 bales besides buyers and sellers in Sindh and Punjab stations remained entangled in price war and general buyers made deals for all grades on competitive price at around Rs 5,975 per maund to Rs 6,675 per maund. Majority of mills and spinners made forward deals in all grades at Rs 5,975 per maund to Rs 6,725 per maund in order to store stocks for rainy days. Besides private sector commercial exporters purchased all grades at Rs 5,975 per maund to Rs 5,475 per maund. The New York May Futures 2017 closed at around 76 cents per pound, July 2017 at 77 cents per pound and Cotlook A index was hovering around 85 cents per pound.