Daily Times

KARACHI: Leading users remained busy in making deals for lint of all qualities on slightly higher prices amid firm spot rates during the trading at cotton market, dealers said. The Karachi Cotton Association (KCA) spot rate stayed stable at Rs 6,350 per maund with moderate volumes, while majority of the deals for fine lint changed hands between leading mills and ginners of Sindh and Punjab. Brokers said ginners of Sindh and Punjab remained engaged in price war with the buyers on issue of better grade lint besides growing demand of the produce kept market sentiments on higher side despite shrinking domestic stocks. The ginners of Punjab and Sindh offered lots around Rs 6,200 per maund and Rs 6,425 per maund to the buyers, while Punjab ginners offered their raw produce on competitive prices at around Rs 5.975 per maund. The quality lint of Punjab fetched above Rs 6,600 per maund while the poor cotton of Punjab was traded around Rs 5,900 per maund and Rs 5,950 per maund. A senior trader, Ghulam Rabbani said market sentiments remained positive, while ginners withholding fine lint were confident that the spot rates would go further up after some recession in coming days.

He said market players demanded of the government to invite international experts on cottonseed in order to develop better seed domestically besides enhancing yield acreage to avoid huger imports. He said quality was becoming rare now and the millers, in need of good quality cotton were making all the possible efforts to find and cover their needs. There was report that some American cotton has also been bought in last week and during next coming week. Rabbani said the international market was likely to stay range-bound as we were heading into March notice period. However, with higher inflation looming, cotton prices should continue to move higher over the longer term on domestic and international front. In the domestic market, textile mills bought 1,200 bales from southern Punjab stations at Rs 6,400 per maund, Sapphire bought 500 bales at Rs 6,100 per maund spinners in upper Sindh stations bought 600 bales at Rs 6,250 per maund. Last night in New York Futures market, March 2017 closed at 73.70 cents per pound, while May closed at 74.09 cents per pound. The Cotlook A index settled at 71 cents per pound.