Daily Times

KARACHI: Leading buyers made forward deals on grade issue at lint market and majority of buyers remained on sidelines on dull trading activity at lint market, traders said.

Buyers made some deals for second grade of lint, traders at Karachi Cotton Association (KCA) said.

KCA kept the spot rate intact at Rs 7,600 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 forward deals for better cotton while sellers offered all grades of lint at around Rs 6,975 per maund to Rs 7,650 per maund 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 on back of grade issue and in anticipation of decline in general prices.

Mills and spinners in Sindh and Punjab stations made forward deals for all grades on competitive price at around Rs 6,975 per maund to Rs 7,425 per maund while secondary buyers made deals for all grades in Punjab and Sindh stations at around Rs 6,975 per maund to Rs 7,050 per maund.

The textile sector is in need of better grades as imported lint has been late and needs certification from Sanitation Department on suspicion of present of virus.

This shows textile sector would face around 50,000 bales of lint immediate shortfall in 3-month period and demand for fine grades would also increase.

Due to grade issue in parts of Sindh and Punjab stations buyers made forward deals for all grades of lint at around Rs 6,975 per maund to Rs 7,200 per maund.

More than 300 bales changed hands with more than 60 percent of Punjab’s share in trading. 200 bales of Mirpurkhas changed hands at Rs 7,000 per maund, 200 bales of Rahimyar Khan at Rs 7,100 per maund and 200 bales of southern Punjab changed hands at Rs 7,075 per maund.

New York July Futures 2018 contract stood at around 86.40 cents per pound, October Futures 2018 contract at 86.36 cents per pound and Cotlook A Index was hovering around 92 cents per pound.

Published in Daily Times, June 20^th 2018.