KARACHI: Trading remained range bound with small deals, while deals also changed hands on a month period credit amid firm spot rate, traders at Karachi Cotton Association (KCA) said on Wednesday.
KCA spot rate committee kept the spot rate at Rs 5,300 per maund in order to support base line price intact, floor brokers said.
They said the buyers and sellers engaged in exchange of previous deal stocks, while weak sellers off-loaded their stocks anticipating further decline in spot rate in the next coming sessions. They said mills and spinners made insignificant deals especially in second and raw grade lint on competitive prices. The better grade lint fetched slightly better price as compared to previous day trading around Rs 5,550 per maund.
Buyers in Punjab and Sindh matured their respective deals made earlier and around 75 percent of the total market volumes to 9,000 bales changed hands during trading session, said floor brokers.
Cottonseed changed hands around Rs 1,100 per maund to 2,500 per maund in Punjab stations while in Sindh stations cottonseed fetched Rs 1,000 to Rs 2,000 per maund, floor brokers said. The domestic market remained subdued due to non-availability of fine lint besides decline in New York Futures Market prices, said analyst Shakeel Ahmad.
Ahmad said cotton prices in international market including India and China remained under pressure as harvest of the crop started arriving. He said previous crop season stocks in the ginneries stood at around 3 million bales, which also impact upon the prevailing cotton prices to dampen.
Ahmad said New York Futures market remained under pressure as March stood at 91 cents per pound and May 2012 stood at 92 cents per pound. Cotlook A index closed at 99 cents per pound.