Fine lint remains in strong demand at cotton market


KARACHI: Lint prices remained strong during the week with firm trading activity on higher demand as fine lint remained in focus, traders at the Karachi Cotton Association (KCA) said on Saturday.
During past week leading buyers remained eager for fine lint while medium sized traders bought lint of all grades, traders said.
Ginning units in Punjab and Sindh stations produced more than 490,000 bales as compared to 450,000 bales in last corresponding week while weak sellers offloaded their produce on buyers’ asking prices, floor brokers said.
The KCA kept the spot rate unchanged at Rs 5,400 per maund, floor brokers added. However, the spot rate had increased by Rs 100 to the current level during the week from Rs 5,300 per maund.
“The private sector commercial exporters and spinners made some selective deals during past week while New York Futures market remained instrumental for keeping local market prices strong,” said an analyst.
He said the spinning sector of the country is still eyeing international lint prices, as they need superior grades for blending purposes for yarn to export to international market.
The textile mills have record volumes as they piled up more than 13.05 million bales out of the total of 14.67 million bales till April 2, 2012, he added.
The country is in a position to export more than 1.50 million bales worth $240 million, as the domestic prices of lint are comparatively lower than the international price, he maintained.
Fine and second grade cotton is readily available at around Rs 6,050 per maund and Rs 4,600 per maund, respectively.
He said cottonseed changed hands at around Rs 1,975 per maund to 2,275 per maund in Punjab stations while in Sindh stations it fetched Rs 1,950 to Rs 2,150 per maund on average.
He said availability of grades (1505 grade I, 1467 grade II and 1503 grade III) has been slow due to dearth of fine grade cottonseed.
During past week around 495,000 bales changed hands as compared to 465,000 bales traded the previous week.
Around 12,000 bales changed hands with more than 95 percent Punjab’s share and low-grade lint changed hands at around Rs 3,975 per maund.
New York Futures remained under correction as May Futures 2012 stayed at around 89.52 cents per pound and July Futures 2012 at 90.50 cents per pound. Cotlook A index was hovering at around 102.50 cents per pound.