Spot rate remains stable at cotton market

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KARACHI: Fine lint remained in focus amid firm spot rate while buyers faced grade problems in Sindh and Punjab, traders at the Karachi Cotton Association (KCA) said on Friday.

KCA kept the spot rate unchanged at Rs 5,450 per maund in order to provide some relief to sellers having poor grades to maximise their returns before Eidul Azha holidays, floor brokers said.

They said sellers offloaded their lint of all grades before Eid in Punjab and Sindh stations as grades were not available besides transportation cost is higher because of lifting sacrificial animals.

They said fine lint fetched slightly lower prices as compared to previous day’s trading at around Rs 5,400 per maund.

The mills and spinners bought around 90 percent of the total market volumes in Punjab and Sindh, said floor brokers.

Cottonseed changed hands at around Rs 2,000 per maund to 2,550 per maund in Punjab stations while in Sindh stations cottonseed fetched Rs 1,200 to Rs 2,450 per maund, floor brokers said.

“New York Futures Market recovered some points, which cast some impact on domestic lint prices as the prices of all grades witnessed dips and shed around Rs 150 to Rs 200 per maund,” said analyst Shakeel Ahmad. “The domestic market’s physical prices also remained on the lower side due to correction in New York Future Market.”

He said availability of grades (1505 grade I, 1467 grade II and 1503 grade III) has been slow due to dearth of fine grade cottonseed. He said prices of low grade maintained its level because of higher demand of fine grade during the trading session.

He said buyers in Punjab and Sindh made forward deals at around Rs 5,100 per maund while compensatory deals changed hands at around Rs 4,200 per maund.

He said around 9,000 bales in Sindh and Punjab stations changed hands on ready delivery basis, which fetched better prices than spot rate.

Ahmad said New York Futures market after some recovery in its index stood firm as December stayed at 99 cents per pound and March 2012 at 97.80 cents per pound. Cotlook A index closed at 109 cents per pound.

Source: http://www.dailytimes.com.pk/default.asp?page=2011%5C11%5C05%5Cstory_5-11-2011_pg5_15

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