Cotton market observes range-bound trading

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KARACHI: Trading at Karachi cotton market remained range-bound with fine lint in focus amid firm spot rate, traders at the Karachi Cotton Association (KCA) said on Wednesday.

The KCA kept the spot rate unchanged at Rs 5,500 per maund, floor brokers said.

Traders said the buyers and sellers in Punjab and Sindh remained selective and bought fine grades while private sector commercial exporters strengthened their inventories by making deals for all grades at around Rs 4,150 per maund to Rs 4,450 per maund.

The sellers withholding fine grades in Punjab and Sindh stations offloaded their produce at around Rs 5,350-5,475 per maund, they added. Lint arrival in the market remained heavy and influencing the physical price of all grades besides prices of second and low grade lint with 5-10 percent trash level in Sindh and Punjab stations stood at around Rs 4,050 per maund to 4,725 per maund, respectively.

“The mills and spinners need all grades in order to fulfil their trade commitments. As domestic lint is still the cheapest in the international lint market, they prefer to buy local grades,” said fibre analyst Shakeel Ahmad.

“The international prices are under the influence of New York Futures market movement.”

The cottonseed prices in Punjab remained at Rs 1,775 per maund to Rs 2,275 per maund while in Sindh stations at Rs 1,400 per maund to Rs 2,050 per maund.

The New York Futures market remained under correction as March Futures 2012 stood at 92 cents per pounds and May Futures 2012 at 92.50 cents per pound. Cotlook A index stood at 101 cents per pound.

Source: http://www.dailytimes.com.pk/default.asp?page=2012%5C02%5C23%5Cstory_23-2-2012_pg5_13

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