Cotton market faces range-bound trading

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KARACHI: The Karachi cotton market witnessed a range-bound trading session amid grade issue and firm spot rate, traders at the Karachi Cotton Association (KCA) said on Monday.

The KCA kept the spot rate unchanged at Rs 5,700 per maund in order to support weak ginners withholding raw lint to fetch better price, floor brokers said.

Traders said the mills in Punjab and Sindh bought lint of all grades on competitive prices at around Rs 4,275 per maund and Rs 5,300 per maund while the price of low grades in Sindh were at around Rs 4,200 per maund to Rs 4,450 per maund.

The ginners withholding fine grades in Punjab stations offloaded their stocks at around Rs 5,975 per maund to Rs 6,175 per maund, they added.

Mills and spinners were eyeing fine grade lint as the stocks were depleting while private sector commercial exporters bought produce on competitive prices in Sindh stations at around Rs 4,650 per maund. They said buyers and sellers in Punjab and Sindh stations also made forward deals for 30 days delivery period at around Rs 4,250 per maund and Rs 4,400 per maund, respectively during the trading session.

“The market sentiment is strong as lint arrival is heavy this season and at the same time domestic market is still under the influence of New York Futures market,” said fibre analyst Shakeel Ahmad. “The New York Futures market remained under correction as on last night it stood at 95-96 cents per pound on average.”

Around 90 percent of the total market volume to 12,000 bales changed hands in Punjab stations during trading session, he said.

The cottonseed prices in Sindh remained under Rs 2,000 per maund to Rs 2,450 per maund and in Punjab they were at around Rs 2,100 per maund to Rs 2,850 per maund depending on grade.

The New York Futures market was under correction as March Futures 2012 stood at 95.50 cents per pounds and May Futures 2012 stood at 95.70 cents per pound. Cotlook A index stood at 100 cents per pound.

Source: http://www.dailytimes.com.pk/default.asp?page=2012%5C02%5C07%5Cstory_7-2-2012_pg5_13

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