KARACHI: The Karachi cotton market witnessed a firm trading session with higher demand for fine lint amid steady spot rate, traders at the Karachi Cotton Association (KCA) said on Tuesday.
The KCA kept the spot rate intact at Rs 6,300 per maund while physical prices remained at around Rs 6,200 per maund to Rs 6,500 per maund, floor brokers said. They said buyers remained eager for lint of all grades and sellers in Sindh and Punjab stations offered raw grades at around Rs 5,400 per maund.
The mills remained active in Punjab and bought all grades of lint at around Rs 5,850 per maund to Rs 6,400 per maund during the trading session.
The buyers in Sindh stations made deals on competitive prices at around Rs 5,500 per maund to Rs 5,600 per maund depending on grades, while cottonseed trading remained moderate in Sindh stations. “The trading will gain momentum in the coming days and after Eidul Fitr with higher influx of cottonseed in the market as the government has withdrawn 3.5 percent withholding tax (WHT) on brokerage transaction,” said analyst Shakeel Ahmad. “The WHT withdrawal would put prices of cottonseed in control besides the end users of lint would get relief from further financial load.” Punjab stations remained firm as buyers especially mills and spinners made deals for all grades besides deals on compensatory basis also at Rs 5,400 to 5,500 per maund.
The private sector commercial exporters remained busy in making deals for all grades and more than 75 percent of the total sales took place in Punjab stations during the trading session.
He said the spinners in Sindh bought selective lots on competitive prices at around Rs 5,600 per maund for blending purposes in order to fulfil demand for different grades of yarn.
Ahmad said New York Futures market remained firm as October stayed at 106.61 cents per pound and December 106.45 cents per pound.