Pakistan: Cotton market witnesses brisk trading at KCA

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KARACHI: The trading remained brisk with firm spot rate and cottonseed was available in plenty, traders at Karachi Cotton Association (KCA) said on Monday.

KCA spot rate committee kept spot rate unchanged at Rs 7,300 per maund, while physical prices remained above Rs 7,300 per maund, floor brokers said.

They said mills in Punjab and Sindh stations purchased selective lots on competitive prices and grade issue was top on buying agenda in Sindh stations.

Despite rains devastation, station in Sindh remained active with sizeable trading in cottonseed and raw cotton and the buyers purchased lots around Rs 6,200 per maund to Rs 7,200 per maund, said analyst Shakeel Ahmad. The cottonseed was available around Rs 1,500 per maund to Rs 2,500 per maund in Sindh and Punjab, depending on grade, he added.

Ahmad said based on the market sentiments, the price would likely to see a depression in the next coming sessions, as influx of cottonseed and raw cotton have been available in plenty. He said spinners were facing grade problem in Sindh however they were still busy in buying in order to strengthen their inventories to cope with any shortage.

He said sunlight for the next 10 days would play a major role in drying up cottonseed and dry cotton in Sindh rain affected stations. He said second grade lint also changed hands in Sindh around Rs 6,000 per maund to Rs 6,100 per maund while exporters remained on sidelines due to grade problems.

Ahmad said half of the total transactions in Sindh and Punjab stations changed hands on early deals delivery basis, which did not allow the spot rate committee to readjust spot rate.

The ginning units in Sindh and Punjab stations accelerated their ginning activity, as weather was getting better, Ahmad maintained.

The buyers in Sindh and Punjab stations also made deals on forward delivery basis for around Rs 6,500 per maund and Rs 6,600 per maund respectively, depending on grades.

Ahmad said New York Futures market faced some downward correction as October stayed at 109.08 cents per pound and December stood at 110.52 cents per pound. Cotlook A index closed at 120.70 cents per pound.

Source: http://www.dailytimes.com.pk/default.asp?page=2011%5C09%5C20%5Cstory_20-9-2011_pg5_13

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