Cotton market faces range-bound trading

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KARACHI: Trading remained range-bound with firm spot rate amid grade issue, traders at the Karachi Cotton Association (KCA) said on Thursday.

The KCA kept the spot rate unchanged at Rs 5,800 per maund in order to help low grades fetch better prices, floor brokers said.

Floor brokers said the sellers and buyers remained entangled in price war in Punjab and Sindh stations on issue of better grades.

The ginners withholding raw grades in Sindh stations offloaded their stocks on slightly lower rates as compared to the previous day’s rates at around Rs 4,200-4,300 per maund, they added.

Spinners eyed fine grade lint as the stocks were depleting while mills bought produce on competitive prices in Punjab stations on slightly higher rates at around Rs 6,100 per maund. They said buyers and sellers in Punjab and Sindh stations also made forward deals for a month’s delivery period at around Rs 5,100 per maund and Rs 4,400 per maund, respectively during the trading session.

They said private sector commercial exporters also brought lint of all grades in order to maintain their liquidity for further purchases.

“The prices of all grades of lint are maintaining stability on back of growing demand of lint on domestic front and stable conditions in New York Futures market,” said fibre analyst Shakeel Ahmad. “Around 90 percent of the total market volume to 21,000 bales changed hands in Punjab stations during trading session.”

The physical prices of second grade lint would get some strength in the next coming trading sessions due to higher demand for blending purpose by the mills and spinners, Ahmad maintained.

The cottonseed prices in Sindh remained under Rs 1,700 per maund to Rs 1,900 per maund and in Punjab at around Rs 2,000 per maund to Rs 2,500 per maund depending on grade.

The New York Futures market was stable as March Futures 2012 stood at 96.92 cents per pounds and May Futures 2012 at 97.36 cents per pound. Cotlook A index stood at 103.15 cents per pound.

Source: http://www.dailytimes.com.pk/default.asp?page=2012%5C01%5C27%5Cstory_27-1-2012_pg5_13

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