Grade issue keeps buying selective at cotton market past week

Author: Staff Report

The buyers and sellers remained entangled in price war on grade issue while physical lint prices stood firm during thin trading on cotton market past week.

However during the week, stakeholders indulged in on-line trading while forward deals in second grade of lint remained on higher side amid firm spot rate and strong physical prices during week on week basis, traders at Karachi Cotton Association (KCA) said Saturday.

Traders said leading buyers made forward deals for better grades of lint on slightly higher price during trading sessions and market volumes showed no improvement as deals volume remained to 36,000 bales, stood same to past week’s volume.

Spot rate at KCA remained stable and physical deliveries of the overall settlements made during last week declared at Rs 8,675 per maund on average. Spot rate remained at Rs 9,300 per maund.

The ginning activities mainly focused on producing second grade of lint on higher demand, he added.

Better grades of lint would still be in higher demand and likely to fetch over Rs 9,700 per maund in next coming economic activities in Punjab and Sindh stations.

Trading Corporation of Pakistan remained supportive to secure interest of sellers and ginners during trading at Karachi Cotton Market.

Domestic cotton prices were cheaper than the import price parity to dollar and fine lint remained in focus on back of growing demand by leading mills and spinning units in the country.

The market sentiments would stand firm due to upward trend in New York Cotton.

Private sector commercial exporters also consolidated their long positions during the past trading sessions.

On Saturday, in the domestic market around 200 bales of Mirpurkhas changed hands at Rs 8,600 per maund, 200 bales between mill to mill changed hands at Rs 8,775 per maund and 200 bales on Karachi delivery basis took place at Rs 8,575 per maund.

New York October Futures 2018 contract closed at 86 cents per pound, December Futures 2018 contract closed at 86.08 cents per pound and Cotlook A Index was settled at 95 cents per pound.

Published in Daily Times, July 29^th 2018.