Spot rate rises by Rs 50/maund with range bound trading

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KARACHI: Fine lint remained in focus amid increasing spot rate with range bound trading, traders at Karachi Cotton Association (KCA) said on Monday.

KCA spot rate committee readjusted the spot rate upward by Rs 50 per maund to stay at Rs 6,300 per maund in order to provide weak ginners for getting good returns on poor grades, floor brokers said. They said fine lint in Punjab and Sindh stations fetched around Rs 6,600 per maund and Rs 6,350 per maund respectively.

Around 75 percent buyers were mills and spinners as they purchased all grades on competitive rates, while private sector commercial exporters bought selective lots in Punjab and Sindh. Cottonseed changed hands around Rs 2,600 per maund to 3,000 per maund in Punjab stations, while in Sindh stations, cottonseed fetched Rs 2,100 per maund to 2,750 per maund, floor brokers said. The country achieved around 525,600 bales more during fortnight arrival of cotton bales till October 15, 2011 as compared to same period last year, said analyst Shakeel Ahmad.

He said according to Pakistan Cotton Ginners Association, textile sector during this period bought 351,8639 bales, while private sector exporters purchased 94,050 bales. Ahmad said stocks lying at the ginneries stood at 100,6084 bales during same period while cottonseed arrival stood equivalent to 524,936 bales. “The country is inching towards bumper crop around 15.10 million bales by the end of this crop season,” he added.

New York Futures market is still under correction phase on back of pressure on commodity at local level, while China and India make strong entry in the market.

He said the local lint prices slightly came under pressure due to blending of poor grades especially in Sindh stations. He said availability of fine grades in Punjab and Sindh was still on slow pace as production of fine grades (1505 grade I, 1467 grade II and 1503 grade III) has been hampered by poor availability of cottonseed. staff report

Source: http://www.dailytimes.com.pk/default.asp?page=2011%5C10%5C18%5Cstory_18-10-2011_pg5_11

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