Fine lint remains in focus at cotton market

0
232

KARACHI: Fine lint remained in focus with range-bound trading amid firm spot rate, traders at Karachi Cotton Association (KCA) said on Saturday.

During the past week with one holiday on Friday, buyers remained cautious in buying on back of wet conditions and grade issue, brokers said.

Spinners bought lint of all grades while sellers with fine grades offered their produce on slightly higher prices at around Rs 6,000 per maund, traders said.

The KCA withheld the spot rate in order to support the liquidity problem of weak sellers besides keeping prices of cottonseed in control, they added.

Ginning units in Punjab and Sindh stations ginned plenty of cottonseed on back of higher demand for fine lint.

Ginners produced more than 1.12 million bales as compared to 1 million bales of all grades in last corresponding week while mills in Punjab and Sindh stations bought lint of all grades at around Rs 5,650 per maund to Rs 5,775 per maund, floor brokers said.

Buyers with less liquidity in Punjab and Sindh stations remained entangled in price war with sellers while compensatory deals for a month’s delivery period changed hands at around Rs 4,950 per maund to Rs 4,925 per maund depending on grades, they said.

On Saturday sellers and buyers in Punjab and Sindh stations remained busy in price war at around Rs 5,575 per maund to Rs 5,675 per maund while around 6,000 bales changed hands with more than 75 percent Punjab’s share.

“Domestic lint prices would remain steady on technical grounds in the next coming week on wet conditions and steady tone of New York Futures market,” said an analyst. “Cottonseed changed hands at around Rs 2,500 per maund to Rs 2,600 per maund during previous week trading.”

The New York Futures market remained steady and influenced international as well as domestic lint prices, he added.

The New York October Futures 2012 closed at 74 cents per pounds and December Futures 2012 at 74.10 cents per pound. Cotlook A index was hovering around 84 cents per pound.

Source: http://www.dailytimes.com.pk/default.asp?page=2012%5C09%5C23%5Cstory_23-9-2012_pg5_8

LEAVE A REPLY