Daily Times

Cotton trading in Sindh and Punjab stations remained selective on grade issue with higher demand for better grades while demand for second grade remained high, dealers said.

The ginning activities at most of the units remained steady while absence of better grade stuff pushed its price on firm footing, said traders.

Leading buyers remained busy making deals for all grade in major Punjab and Sindh stations that kept trading moderate at most of the stations and traders at Karachi Cotton Association (KCA) also bought sizeable volumes during trading session.

Slow cottonseed arrival to ginneries due to shrinking stocks and slow arrival of fine grades kept trading in Punjab and Sindh stations selective besides prices of all grades remained at the hands of sellers on back of shrinking stocks.

KCA kept the spot rate at Rs 8,800 per maund after downward adjustment in order to provide support to raw grade sellers for getting better prices, floor brokers said.

During the trading session, spinners and mills made deals for fine stocks at Rs 8,675 per maund to Rs 8,750 per maund while private sector commercial exporters purchased second grade of lint at around Rs 8,650 per maund, floor brokers said.

Grade issue would remain intact, while weather is suitable for standing crop besides cottonseed would not be in plenty however some stations were producing fine grade cottonseed in limited quantity, said Shakeel Ahmad a fibre analyst.

General buyers made deals for all grades on competitive prices at around Rs 7,975 per maund to Rs 8,075 per maund while buyers with less liquidity made deals in all grades in Punjab stations at around Rs 7,900 per maund, he said.

More than 1,800 bales changed hands with more than 65 percent of Punjab’s share in trading.

New York October 2018 Futures stood at around 85 cents per pound, December Futures 2018 at 85.09 cents per pond and Cotlook A index was hovering around 93 cents per pound.

Published in Daily Times, August 2^nd 2018.