Daily Times

KARACHI: Buyers made deals for all grades amid steady physical price during trading session at lint market, floor brokers said.

Fresh selling in fine grades remained underdog with slower influx of fine grades while buyers remained engaged in price war with sellers on second grade, dealers said.

The majority of the ginning units were producing second grades in abundance on future demand while production of fine grade remained slow on dull pace of fine cottonseed arrival. Ginners produced second grade bales to around 6,000 bales out of the total output of 6,900 bales, traders said.

Spinners and mills bought all grades while some buyers involved in consolidating their long positions by making deals in all grades, said floor brokers.

The cotton price stayed stable during the trading session and around 200 bales of upper Sindh and Southern Punjab each changed hands at Rs 5,500 per maund. The Karachi Cotton Association (KCA) readjusted physical spot rate upward by Rs 50 per maund to Rs 5,600 per maund, the dealers said.

Traders said the buyers also made deals for quality cotton on slightly higher price at around Rs 5,700 per maund while the leading sellers sensing future demand of quality lint offered fewer stocks on higher prices to the buyers.

Ghulam Rabbani, a senior trader at KCA said the domestic buyers were forced accepting a bit higher price on their end-products demands while the leading users purchased around 200 bales at around Rs 5,450 per maund during the session.

The sellers of Punjab offered cotton of all grades to the buyers around Rs 5,000 per maund to Rs 5,325 per maund while ginners of Sindh offered low-grade lint to the buyers around Rs 4,975 per maund.

New York Cotton May 2016 future closed slightly improved at 64.08 cents per pound and July future 2016 closed at 64.27 cents per pound.