Daily Times

The leading buyers made deals for better and second grade of lint on slightly higher prices while shrinking better grades put price in comfort zone in lint market during the past trading week, dealers said.

The Karachi Cotton Association (KCA) spot rate stayed firm at Rs 9,200 per maund with moderate volumes, while leading buyers made deals with ginners of Sindh and Punjab on competitive price.

Floor brokers said spinners of Sindh and Punjab remained engaged in price war with the ginners on issue of better lint besides growing demand for the produce kept market sentiments firm despite shrinking domestic stocks.

The ginners of Punjab and Sindh offered lots around Rs 8,545 per maund and Rs 9,025 per maund to the buyers, while Sindh ginners offered their raw produce on competitive prices at Rs 6,000 per maund depending on trash level during the past week.

The quality lint of Punjab fetched above Rs 9,272 per maund while the raw cotton of Punjab was traded around Rs 6,075 per maund depending on trash level for most of the trading sessions.

Market sentiments remained positive during past week, while ginners withholding fine lint were confident that the spot rate would go further up after some recession in coming days.

However, with higher inflation looming, cotton prices should continue to move higher over the longer term on domestic and international front.

On Saturday, the last trading day of the week, the spot rate remained firm and buyers made some forward deals for a month period for all grades of lint above Rs 6,925 per maund to Rs 8,000 per maund. In the domestic market 200 bales of Sanghar changed hands at Rs 9,025 per maund, 200 bales of Multan at Rs 8,900 per maund and 200 bales of southern Punjab at Rs 8,950 per maund.

Last night in New York futures market, October Futures contract 2018 closed at 85.09 cents per pound, while December Futures contracts 2018 closed at 85.23 cents per pound. The Cotlook A index settled at 93 cents per pound.

Published in Daily Times, August 5^th 2018.