The KCA kept the spot rate unchanged at Rs 5,300 per maund in order to keep the hopes of sellers having lower grade for reasonable rates and not below the base line price, floor brokers said.
They said the buyers in Punjab and Sindh stations bought raw grades on lower than the spot rate besides sellers during most part of the session weree engaged in offloading raw stocks on buyers’ asking price.
They said spinners and mills in Punjab made deals in order to keep their inventories with sizeable buffer stocks while private sector commercial exporters bought selective grades in Sindh and Punjab stations. The better grade lint fetched slightly lower price as compared to previous day’s trading at around Rs 5,350 per maund.
Buyers in Punjab and Sindh stations were engaged in finalising old deals at around 85 percent of the total market volumes to 21,000 bales in Punjab, said floor brokers.
Cottonseed changed hands at around Rs 1,350 per maund to Rs 2,100 per maund in Punjab stations while in Sindh stations cottonseed fetched Rs 1,000 to Rs 1,700 per maund, floor brokers said.
The fallout of the ginners ultimatum for shutter down ginning activities has pushed the legislature at National Assembly on Textile matters to ask the government to put Trading Corporation of Pakistan (TCP) in the active buying of lint, said analyst Shakeel Ahmad.
Falling cotton prices pushed the growers tow the bottom line, as they were not getting fair price for their commodity from the ginners, Ahmad maintained.
TCP’s interference as second player in the trade would definitely increase prices to some extent but the textile sector would have to face high prices for their value addition, he added. The domestic market was under price pressure due to non-availability of fine lint besides downward trend in New York Futures Market prices, he said.
Ahmad said prices in Sindh remained under Rs 5,000 per maund to Rs 3,500 per maund and in Punjab were around Rs 5,350 per maund to Rs 4,900 per maund.
Ahmad said New York Futures market remained under pressure as March stood at 87.16 cents per pound and May 2012 at 87.06 cents per pound. Cotlook A index closed at 96.70 cents per pound.