Pakistan: Dull trading prevails at cotton market

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KARACHI: Trading at Karachi cotton market remained dull with plenty of forward deals amid stable spot rate, traders at the Karachi Cotton Association (KCA) said on Friday.

The KCA kept the spot rate unchanged at Rs 5,300 per maund to support low grades lint to fetch fair prices, floor brokers said.

Traders said the buyers and sellers in Punjab and Sindh were engaged in materialising forward deals on amicable rates.

The private sector commercial exporters in Sindh and Punjab stations remained on the sidelines as the prices did not seem fit for export parity level besides paucity of fine grades in the market.

The price of low grades in Sindh remained at around Rs 2,400 per maund to Rs 2,500 per maund while in Punjab they were at around Rs 2,600 per maund to Rs 2,900 per maund, depending on trash level.

The sellers withholding fine grades in Punjab and Sindh stations brought out their produce at around Rs 5,200 and Rs 4,400 per maund, respectively, they added. The physical prices are still under pressure due to lack of interest from leading buyers in addition to declining trend in international lint prices. “The buyers made forward deals on one to two months credit while in Punjab stations buyers also made deals in fine lint at Rs 5,250 per maund,” said fibre analyst Shakeel Ahmad. “Mills were also not interested in making fresh deals before fresh fortnight arrival report of lint due in two days.”

They have already purchased more than 12.6 million bales this crop season and in principal stopped buying in anticipation of easing spot rate in the next coming sessions, he maintained. New York Futures market was still under correction, which was influencing the international lint prices, Ahmad added.

The cottonseed prices in Punjab remained at Rs 1,500 per maund to Rs 2,100 per maund while in Sindh stations they were at Rs 1,000 per maund to Rs 1,800 per maund.

The New York Futures market remained under correction as March Futures 2012 stood at 89.80 cents per pounds and May Futures 2012 at 90 cents per pound. Cotlook A index stood at 100 cents per pound.

Source: http://www.dailytimes.com.pk/default.asp?page=2012%5C03%5C03%5Cstory_3-3-2012_pg5_13

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