KARACHI: Trading at the Karachi cotton market remained dull as sellers were reluctant to offload their produce on lower than the spot rate, traders at the Karachi Cotton Association (KCA) said on Wednesday.
The KCA kept the spot rate unchanged at Rs 5,600 per maund to provide support to weak ginners holding raw lint to fetch better prices, floor brokers said.
Traders said buyers in Punjab and Sindh bought selective lots on competitive prices besides made deals on forward delivery at around Rs 4,120 per maund and Rs 5,600 per maund while the price of low grades in Sindh were around Rs 3,000 per maund to Rs 3,250 per maund. The ginners withholding fine grades in Punjab stations offloaded their stocks at around Rs 5,700-5,850 per maund, they added.
Heavy influx of lint during February pushed the physical prices slightly down besides prices of second and low grade lint in Sindh and Punjab stations stood at around Rs 3,000 per maund to 3,600 per maund, respectively.
They said buyers and sellers in Punjab and Sindh stations also made compensatory deals at around Rs 3,200 per maund and Rs 4,000 per maund, respectively during the trading session.
“The physical prices in the market are in favour of buyers, but leading buyers made small deals in assorted grades, said fibre analyst Shakeel Ahmad. “There are around 900,000 to one million bales from old crop still lying with the ginners in Sindh and Punjab stations.” The prices would remain under control as far as the influx of lint would remain higher than the daily demand, he added.
The New York Futures market shed around 50 points last night and are still influencing local lint prices as the current average price of lint is around Rs 4,500 per maund, he added.
The cottonseed prices in Sindh remained under Rs 1,500 per maund to Rs 2,100 per maund and in Punjab around Rs 1,900 per maund to Rs 2,600 per maund depending on grade.
The New York Futures market remained under correction as March Futures 2012 stood at 91.25 cents per pounds and May Futures 2012 at 92.84 cents per pound. Cotlook A index stood at 100 cents per pound.