KARACHI: Cotton trading in Sindh and Punjab stations remained firm with higher demand for fine grades while volumes remained low on back of slow economic activities at ginneries, dealers said.
The ginning activities at most of the units remained below capacity while absence of second grade stuff pushed its price on firm footing, said traders.
Leading and general buyers remained busy making deals in all grade in major Punjab stations that kept trading moderate at most of the stations and traders at Karachi Cotton Association (KCA) also made sizeable deals during trading activity.
Tight cottonseed arrival to ginneries due to shrinking stocks and slower arrival of fine grades kept trading in Punjab and Sindh stations dull besides prices of all grades remained at the hands of sellers on back of shrinking stocks.
KCA kept the spot rate at Rs 5,150 per maund in order to provide support to raw grade sellers for getting better prices, floor brokers said.
During the trading session, spinners purchased stocks at Rs 4,975 per maund to Rs 5,025 per maund while mills bought fine grades for immediate use at around Rs 5,100 per maund, floor brokers said.
Grade issue would remain intact, while weather is suitable for standing crop besides cottonseed would not be in plenty however some stations were producing fine grade cottonseed in limited quantity, said Shakeel Ahmad a fibre analyst.
General buyers made deals for all grades on competitive prices at around Rs 4,925 per maund to Rs 4,975 per maund while buyers with less liquidity made deals in all grades in Punjab stations at around Rs 4,900 per maund, he said.
The domestic fine lint prices are on higher side due to demand and international price parity that does not allow import of the commodity, sellers withholding fine grades asked slightly higher prices for their stocks on back of shrinking fine grades, as some deals changed hands at around Rs 5,200 per maund in Punjab stations.
Private sector commercial exporters bought all grades at around Rs 4,950 per maund to Rs 4,975 per maund in order to fortify their long positions in anticipation of increase in prices in the next coming trading sessions. 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 61 cents per pound and Cotlook A index was hovering around 69 cents per pound.
