KARACHI: Buyers remained eager for fine lint and trading remained range-bound on grade issue while general price kept the leading buyers active, traders at the Karachi Cotton Association (KCA) said on Monday.
KCA kept the spot rate intact at Rs 5,150 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level, said floor brokers.
Buyers in Sindh and Punjab stations made deals for all grades on cautious note as grade issue slowed down buying. Traders offered all grades of lint on bargaining rates at around Rs 4,950 per maund to Rs 5,125 per maund in order to capitalise maximum returns on their proceeds, floor brokers said.
Buyer 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.
Mills in Sindh and Punjab stations made deals for all grades on competitive price at around Rs 4,950 per maund to Rs 5,100 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,925 per maund to Rs 5,025 per maund, traders said.
The textile sector is facing dearth of fine grades, which would be a positive sign for the cotton sector besides cotton valuation, said Shakeel Ahmad a fibre analyst.
The recent weather in cotton growing belt in Punjab remained suitable for standing crop, however hot weather in coming days could disturb some of 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 4,950 per maund to Rs 5,000 per maund.
More than 200 bales changed hands with more than 60 percent of Punjab’s share in trading.
New York May 2015 Futures stood at around 60 cents per pound and Cotlook A index was hovering around 69 cents per pound.
