Daily Times

KARACHI: Buying on lint market remained selective on grade issue and buyers at major stations in Sindh and Punjab stations bought fine grades on paying premium price.

They remained eager for better grades of lint while majority of buyers also made deals for second grade of lint on premium price.

Ginning units in upper Sindh and southern Punjab stations ginned better grades of lint on demand besides they also booked one month advanced deals for better grades on slightly higher price.

Grade issue is one of the factors has been forcing buyers to make deals on second grade of lint.

Fine grade of lint is depleting fast so buyers also made deals for better grades from old buffer stocks that has been fetching price at around Rs 7,650 per maund to Rs 7,825 per maund.

General prices of all grades remained in comfort zone while sellers withholding raw grades offloaded their stuff on buyers’ asking price at around Rs 6,075 per maund depending on trash level.

Dearth of better grades and slow arrival of cottonseed in the ginneries put trading selective, traders at Karachi Cotton Association (KCA) said.

KCA kept the spot rate at Rs 7,500 per maund in order to provide assistance to weak sellers of raw grade to ward off minimal price level.

During trading session, buyers in Sindh and Punjab stations purchased better grades of lint on slightly higher price at around Rs 7,775 per maund while ginners withholding better stocks slowed down their deals for getting better price in future deals.

Buyers with less liquidity remained on sidelines in anticipation of decline in general prices.

The import shipment of 15,000 bales is expecting to reach port in end August 2018 and would likely to cast some pressure on raw grades’ lint prices.

Private sector commercial exporters made forward deals for a month period at around Rs 6,975 per maund to Rs 7,150 per maund.

The textile made up sector is eyeing on better grades and major garment export units are buying second grade of lint for blending purpose on slightly higher price.

New York July Futures 2018 contract closed at 86.04 cents per pound, October Futures 2018 contract at 86.22 cents per pound and Cotlook A Index was hovering around 94 cents per pound.

Published in Daily Times, June 27^th 2018.