Daily Times

KARACHI: The leading buyers remained eager for better grades of cotton while demand for second grade of lint remained on the higher side, fibre traders said.

The better grades fetched premium prices besides it kept general prices in the comfort zone during the trading sessions at the lint market, dealers said.

The Karachi Cotton Association (KCA) spot rate stayed firm at Rs 6,850 per maund with moderate volumes traded, while leading buyers made one-month forward deals with ginners of Sindh and Punjab at competitive prices.

Floor brokers said ginners of Sindh and Punjab remained engaged in the price war with the buyers on the issue of better lint besides growing demand of the produce kept market trading sentiments firm.

The ginners of Punjab and Sindh offered all grades of lint at around Rs 6,500 per maund to Rs 6,825 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.

The quality lint of Punjab fetched above Rs 6,800 per maund while the raw cotton of Sindh was traded at around Rs 5,975 per maund and at Rs 6,000 per maund depending on trash level.

A senior trader, Ghulam Rabbani said market sentiments remained positive, while ginners withholding fine lint on shrinking supply were confident that the physical prices would go further up in the coming days.

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

Mills and spinners also made some forward deals for a month’s period above Rs 6,650 per maund. In the domestic market 200 bales of Mirpurkhas changed hands at Rs 6,525 per maund, 200 bales of Sanghar at Rs 6,725 per maund and 100 bales of southern Punjab at Rs 6,675 per maund.

Last night in New York Futures market, May 2017 closed at around 76 cents per pound, while July 2017 closed above 76.50 cents per pound. The Cotlook A Index settled at 86 cents per pound.