KARACHI: Buyers remained cautious on making deals for all grades during trading in lint market while physical price eased on technical ground, floor brokers said. The buyers made forward deals on slightly higher price at around Rs 6,000 per maund, traders at the Karachi Cotton Association (KCA) said.
KCA kept the spot rate at Rs 6,350 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, buyers in Sindh and Punjab stations bought selective lots on grade issue. Traders offered all grades of lint on bargaining rates at around Rs 4,975 per maund to Rs 6,375 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.
Spinners in Sindh and Punjab stations purchased second grade on competitive price at around Rs 6,400 per maund to Rs 6,450 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,975 per maund to Rs 5,150 per maund, traders said.
The textile sector is in dire need of second and fine grade, that would put positive impact on prices besides its market valuation, said Shakeel Ahmad a fibre analyst.
The recent weather in cotton growing belt in Punjab remained suitable for standing crop.
Due to grade issue in parts of Sindh and Punjab stations buyers made forward deals for all grades of lint at around Rs 5,000 per maund to Rs 5,275 per maund.
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 75 cents per pound, October Futures at 74.74 cents per pound and Cotlook A index was 0hovering around 70 cents per pound.