Pakistan: Lacklustre trading prevails at cotton market

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KARACHI: Lacklustre trading was witnessed in Sindh and Punjab stations on back of low grades while buyers eyed fine grades, said traders on Monday.

However some deals in Sindh and Punjab stations changed hands at competitive prices at around Rs 6,400 per maund with firm spot rate, which stood at Rs 6,450 per maund, traders at the Karachi Cotton Association (KCA) said.

In Punjab and Sindh stations leading buyers remained to the sidelines on grade issue while ginning activities remained slow because of holiday like conditions on back of general election results.

Most of the workforce at ginning and leading market facilities would start activity in the next 24 hours after spending three holidays, traders said.

Some purchases were made on competitive prices at around Rs 5,225 per maund to Rs 5,475 per maund depending on grade in some stations in Punjab and Sindh, floor brokers said.

During the trading session, medium-sized buyers in Punjab and Sindh stations made some deals for fine grades at around Rs 6,675 per maund to Rs 6,700 per maund in order to maintain the inventories firm on back of shrinking stocks, said traders.

More than 2,000 bales changed hands with more than 70 percent of Punjab’s share in trading.

“General buyers with liquidity problems did not indulge in buying while sellers withholding fine grades slowed down their offers on back of hopes for some increase in prices after some trading sessions,” said an analyst. “Under dull buying some deals changed hands at Rs 4,750 per maund in Punjab stations while in Sindh stations second grade changed hands at Rs 4,475 per maund.”

International lint prices are still under some correction on lack of interest by major international buyers though the New York Futures market sentiments regained some strength.

Liquidity crunch is also one of the major reasons for dull buying by many of the secondary traders in the market.

New York July 2013 Futures stood at around 86.75 cents per pound and October 2013 Futures around 86.20 cents per pound. Cotlook A index was hovering around 94 cents per pound.

Source: dailytimes.com.pk

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