KARACHI: Trading remained dull on insignificant buying at lint market while buyers made selective deals for all grades during trading, floor brokers said. The buyers also made forward deals on slightly higher price at around Rs 6,425 per maund, traders at the Karachi Cotton Association (KCA) said.
KCA readjusted the spot rate at Rs 6,300 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level, said floor brokers.
During the trading session, spinners in Sindh and Punjab stations purchased all grades while mills made selective deals on grade issue. Traders offered all grades of lint on bargaining rates at around Rs 4,975 per maund to Rs 6,275 per maund in order to capitalise maximum returns on their proceeds, floor brokers said.
Leading buyer remained cautious and only made deals according to their immediate need of lint on back of grade issue and in anticipation of decline in spot rate, they added.
Deals in Sindh and Punjab stations changed hands on competitive price at around Rs 5,025 per maund to Rs 6,100 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,975 per maund to Rs 5,025 per maund, traders said.
The textile sector is aiming to pile up second grade lint in order to avoid future dearth of the produce, as import remains costly. Maximum deals changed hands for second and fine grade, that put positive impact on general prices besides its market valuation, said Shakeel Ahmad a fibre analyst.
The weather in cotton growing belt in Punjab and Sindh remained suitable for fresh crop. The shortage of energy to textile sector in Sindh was still endangering cotton growers’ selling volumes.
More than 200 bales changed hands with more than 60 percent of Punjab’s share in trading.
New York October 2016 Futures stood at around 72 cents per pound, October Futures at 72.33 cents per pound and Cotlook A index was hovering around 70 cents per pound.