Cotton market faces bearish trading session

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KARACHI: The Karachi cotton market witnessed a bearish trading session amid dearth of fine stocks, traders at the Karachi Cotton Association (KCA) said on Saturday.

During the past week, buyers in particular bought fine lint while sellers with fine grades offered their produce on slightly higher prices at around Rs 5,600 per maund, traders said.

Ginning units in Punjab and Sindh stations produced more than 720,000 bales as compared to 700,000 bales of all grades in the last corresponding week while mills bought fine lots to meet their fine cloth orders at around Rs 5,325 per maund to Rs 5,975 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 4,525 per maund to Rs 5,000 per maund depending on grades, they said.

The KCA kept the spot rate unchanged at Rs 5,600 per maund, while it fell by Rs 300 per maund during the week from Rs 5,900 per maund.

“More than 40 percent of the physical trade changed hands on compensatory level while physical prices ruled firm on back of strong demand for fine lint, particularly in Punjab stations,” said an analyst. “Lint prices would likely ease further in the next coming trading sessions on back of Indian offers, New York Futures correction and plenty of raw grades.”

Spinners remained eager for fine lint for blending purposes while private sector commercial exporters bought lint of all grades to fortify their inventories.

He said cottonseed changed hands at around Rs 2,600 per maund to Rs 2,725 per maund in Punjab stations while in Sindh stations cottonseed fetched Rs 2,100 to Rs 2,250 per maund on average.

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

On Saturday around 4,000 bales changed hands with more than 90 percent Punjab’s share and low grade lint changed hands at around Rs 3,150 per maund.

New York Futures market remained under correction as July Futures 2012 stayed at around 74 cents per pound and October Futures 2012 stood at 75 cents per pound. Cotlook A index was hovering around 99 cents per pound.

Source: http://www.dailytimes.com.pk/default.asp?page=2012%5C05%5C27%5Cstory_27-5-2012_pg5_11

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