Buying in old crop on higher side on grade issue amid firm physical prices at lint market

Author: Staff Report

Buyers made deals on selective note depending on grade issue during trading session with firm physical prices at lint market.

Grade issue kept leading buyers to make cautious deals while market’s sentiments remained firm. Forward trading for a month period also took place, traders at Karachi Cotton Association (KCA) said.

KCA kept the spot rate intact at Rs 9,000 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 bought lint on cautious note while sellers offered second grade of lint at around Rs 8,550 per maund to Rs 8,575 per maund on increasing demand and 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 in anticipation of decline in spot rate.

Spinners in Sindh and Punjab stations made deals for better grades on competitive price at around Rs 8,825 per maund to Rs 8,850 per maund while secondary buyers made deals for all grades in Punjab and Sindh stations at around Rs 7,175 per maund to Rs 8,050 per maund.

Import orders of better and second grade of lint is still in limelight on depleting value of dollar, However in order to accomplish end products exports orders besides domestic fine stuff on shrinking, leading stakeholders could go for imports on rupee-dollar parity.

More than 1,800 bales changed hands with more than 65 percent of Punjab’s share in trading. New York October Futures 2018 contract stood at around 85 cents per pound. December Futures 2018 contract at 85.06 cents per pound and Cotlook A Index was hovering around 93 cents per pound.

Published in Daily Times, August 1^st 2018.