Daily Times

On depleting stocks of fine grades of lint, buyers remained in hunt of second grade of produce during trading session at cotton market, traders said. However buying for all grades put general prices of lint in firm zone, traders at Karachi Cotton Association (KCA) said.

KCA kept the spot rate intact at Rs 8,100 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level, said floor brokers.

During the trading session, buyers in Sindh and Punjab stations made forward deals for one month period on cautious note as grade issue was continued. They made deals for better grades at around Rs 7,700 per maund to Rs 7,800 per maund, floor brokers said.

Ginners offered all grades of lint on bargaining rates at around Rs 6,025 per maund to Rs 7,925 per maund in order to capitalise maximum returns on their proceeds, floor brokers said.

Spinners remained cautious and only made deals according to their immediate need of lint on back of grade issue and in anticipation of decline in spot rate, they added.

Secondary buyers in Sindh and Punjab stations bought stuff on competitive price at around Rs 6,525 per maund to Rs 6,875 per maund while private sector commercial exporters made deals for all grades in Punjab and Sindh stations at around Rs 6,675 per maund to Rs 6,700 per maund, traders said.

The garment and spinning sector is facing dearth of better grades, besides eyeing imports that would put positive impact on prices besides its market valuation, said Shakeel Ahmad a fibre analyst.

The weather in cotton growing belt in Punjab remained suitable for last picking of standing cottonseed. Due to grade issue in parts of Sindh and Punjab stations buyers made forward deals for all grades of lint at around Rs 7,100 per maund.

More than 600 bales changed hands with more than 60 percent of Punjab’s share in trading. New York July Futures 2018 contract stood at around 84 cents per pound, October Futures 2018 contract at 80.18 cents per pound and Cotlook A Index was hovering around 92 cents per pound.

Published in Daily Times, July 11^th 2018.