Pakistan: Cotton market faces bearish trend

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KARACHI: Trading remained bearish with dearth of fine stocks during the week, traders at the Karachi Cotton Association (KCA) said on Saturday.

During the past week, buyers bought lint of all grades while sellers with fine grades offered their produce on slightly higher prices at around Rs 6,300 per maund, traders said.

Ginning units in Punjab and Sindh stations produced more than 700,000 bales as compared to 690,000 bales of all grades while spinners and mills bought fine lots to meet their yarn and fine cloth orders at around Rs 6,225 per maund to Rs 6,175 per maund, floor brokers said.

Buyers and sellers in Punjab and Sindh stations remained entangled in price war on quality lint besides made forward deals for a month’s delivery period at around Rs 5,125 per maund to Rs 5,000 per maund, depending on grades, they said.

The KCA kept the spot rate firm at Rs 5,900 per maund. The spot rate fell Rs 200 per maund to Rs 5,900 per maund during the week, floor brokers added.

The physical prices ruled firm on back of strong demand for fine lint besides poor grades fetched around Rs 3,500 per maund particularly in Sindh stations, said an analyst. Lint prices would further ease next week on back of Indian offers, which were around 58-59 cents per pound for Shanker 6 grade in the international market.

He said cottonseed changed hands at around Rs 3,000 per maund to 3,125 per maund in Punjab stations while in Sindh stations cottonseed fetched Rs 2,100 to Rs 2,325 per maund on average.

During the past week around 660,000 bales changed hands as compared to 600,000 bales traded in the previous week.

On Saturday sellers and buyers at Punjab and Sindh stations remained entangled in price war while in Punjab stations some buyers also bought fine grade lint on credit terms for a month’s period.

On Saturday around 5,000 bales changed hands with more than 90 percent Punjab’s share and low grade lint changed hands around Rs 3,250 per maund.

New York Futures market remained under correction as May Futures 2012 stayed at around 78 cents per pound and July Futures 2012 at 79 cents per pound. Cotlook A index was hovering around 100 cents per pound.

Source: http://www.dailytimes.com.pk/default.asp?page=2012%5C05%5C20%5Cstory_20-5-2012_pg5_13

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