KARACHI: Lint trading remained firm on higher demand amid fine lint in focus with strong physical prices past week, traders at the Karachi Cotton Association (KCA) said on Saturday.
During past week buyers bought lint of all grades while sellers with fine grades offered their produce on slightly higher prices at around Rs 6,900 per maund, traders said.
Ginning units in Punjab and Sindh stations produced more than 600,000 bales as compared to 540,000 bales of all grades in last corresponding week while buyers with less liquidity bought selective lots to meet their immediate needs at around Rs 4,100 per maund to Rs 4,275 per maund, floor brokers said.
Buyer and sellers in Punjab and Sindh stations remained entangled in price war on quality lint besides made forward deals for a month delivery period at around Rs 5,450 per maund to Rs 5,950 per maund depending on grades, they said.
The KCA remained unchanged at Rs 6,200 per maund on Saturday. During the previous couple of session, however, the KCA revised the spot rate upward by Rs 350 per maund to stay at Rs 6,200 per maund, floor brokers added.
The prices will rule the market in the next coming week on higher demand while New York Futures market prices remained instrumental for keeping local market prices strong, said an analyst.
He said the prices would see an increase as spinning sector remained eager for fine lint for blending purposes to meet local as well as international orders of cloth and yarn.
On Saturday sellers and buyers at Punjab and Sindh stations remained entangled in price war while in Sindh some buyers also bought second grade lint on credit terms for a month period.
On Saturday around 9,000 bales changed hands with more than 90 percent Punjab’s share and low grade lint changed hands at around Rs 3,995 per maund.
New York Futures market remained strong. May Futures 2012 stayed at around 90 cents per pound and July Futures 2012 stood at 89.90 cents per pound. Cotlook A index was hovering around 100 cents per pound.