Daily Times

KARACHI: Buying for better grades in lint market kept prices firm while grade-conscious buyers made deals on a slightly higher price, traders at the Karachi Cotton Association (KCA) said.

KCA kept the spot rate intact at Rs 6,350 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level, said floor brokers.

During the trading session, mills in Sindh and Punjab stations purchased all grades cautiously as grade issue was continued. Traders offered all grades of lint on bargaining rates at around Rs 5,975 per maund to Rs 6,575 per maund in order to capitalise maximum returns on their proceeds, floor brokers said.

Leading buyers remained cautious and only made deals according to their immediate need of lint on back of grade issue and in anticipation of decline in spot rate, they added.

Spinners in Sindh and Punjab stations made forward deals for a one month period and bought fine grades on competitive price at around Rs 6,500 per maund to Rs 6,575 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 5,975 per maund to Rs 6,100 per maund, traders said. The textile sector is facing dearth of fine grades that would put positive impact on prices besides its market valuation, said Shakeel Ahmad a fibre analyst. The recent weather in cotton growing belt in Punjab remained suitable for standing crop. The shortage of energy to textile sector was still endangering cotton growers’ selling volumes. Due to grade issue in parts of Sindh and Punjab stations buyers made forward deals for all grades of lint at around Rs 6,275 per maund.