Daily Times

Buyers made forward deals for better grades of lint amid firm physical prices during dull trading session besides second grade of lint changed hands during trading session, fibre traders said.

Influx of better grade cottonseed in ginneries stood thin while ginners preferred to fetch better prices of their commodity.

The damage level to standing crop in parts of Punjab and Sindh growing areas following stagnant rainwater is being estimated, floor brokers said.

Demand for better grades of lint would be an added factor for stable lint market however raw lint price remained depressed during trading session, floor brokers said.

Forward deals for a month period changed hands that pushed price of second grade of lint in comfort zone. The Karachi Cotton Association (KCA) kept spot rate at Rs 7,500 per maund.

Floor brokers said buyers made deals for better and second grade of lint for blending purpose at around Rs 7,575 per maund and Rs 7,400 per maund during the trading session respectively.

A senior trader, Ghulam Rabbani said leading users of lint consolidated their long positions by making deals for second grade if lint on back of shrinking stocks. Shrinking fine lint would put general prices in firm zone and buyers were keeping eye on imports due after two months on port.

The private sector commercial importers remained on sidelines and made inquiries on competitive price from old stocks.

According to KCA, 100 bales of Mirpurkhas changed hands at Rs 7,100 per maund, 100 bales of southern Punjab at Rs 7,325 per maund, 100 bales of upper Sindh at Rs 7,000 per maund and 100 bales of Bahawalpur at Rs 7,075 per maund.

In domestic market buyers remained busy on online trading for quality lint on the back of growing demand of end products.

New York Cotton July Future 2018 contract closed slightly depressed at 84.51 cents per pound, October Futures 2018 contract at 84.60 cents per pound and Cotlook A Index was hovering at 92 cents per pound.

Published in Daily Times, June 29^th 2018.