Daily Times

KARACHI: The buyers made deals for all qualities on slightly higher prices while shrinking better grades put price in the comfort zone on the lint market during the past trading week, dealers said.

The Karachi Cotton Association (KCA) spot rate stayed firm at Rs 6,450 per maund with moderate volumes, while leading buyers made deals with ginners of Sindh and Punjab on a competitive price.

Floor brokers said ginners of Sindh and Punjab remained engaged in price a war with the buyers on the 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 at around Rs 6,000 per maund and Rs 6,575 per maund to the buyers, while Punjab ginners offered their raw produce on competitive prices at Rs 5,975 per maund depending on trash level during the past week.

The quality lint of Punjab fetched above Rs 6,600 per maund while the raw cotton of Punjab was traded around Rs 5,975 per maund depending on trash level for most of the trading sessions.

A senior trader, Ghulam Rabbani said market sentiments remained positive during the 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 fronts.

On Saturday, the last trading day of the week, the spot rate remained firm and buyers made some forward deals for a month of above Rs 6,125 per maund. In the domestic market 200 bales of Sanghar changed hands at Rs 6,275 per maund, 200 bales of Multan at Rs 6,200 per maund and 200 bales of southern Punjab at Rs 6,375 per maund.

Last night in New York futures market, March 2017 closed at 73.43 cents per pound, while May 2017 closed at 73.96 cents per pound. The Cotlook A index settled at 81 cents per pound.