Cotton trading remains selective on general price adjustment


KARACHI: Trading remained grade selective while buyers made deals for better grades of lint on sellers\\’ asking price amid firm spot rate, fibre traders said.

Forward deals also changed hands that pushed physical prices in green zone. The Karachi Cotton Association (KCA) kept spot rate at Rs 6,450 per maund.

Floor brokers said buyers bought all grades at around Rs 6,250 per maund to Rs 6,750 per maund and deals for fine and second grade lint for blending purpose remained sound that changed hands at around Rs 6,650 per maund on average during trading session.

A senior trader, Ghulam Rabbani said spinners consolidated their long positions and made deals for second grade on paying premium price.

The shrinking fine lint stocks put general price in firm zone and buyers also made a month period forward deals on slightly higher price at around Rs 6,525 per maund in Sindh and Punjab stations.

The private sector commercial exporters consolidated their long positions and bought stuff from old stocks. The buyers remained selective on grade and consolidated their future positions with fresh fine lots, he added.

According to KCA, 100 bales of Mirpurkhas changed hands at Rs 6,270 per maund, 100 bales of Dadu at Rs 6,125 per maund, 100 bales of upper Sindh at Rs 6,475 per maund and 100 bales of southern Punjab at Rs 6,625 per maund.

In domestic market buyers remained eager for quality lint on the back of growing demand of end products.

The ginners of Punjab offered cotton of all grades to the buyers around Rs 5,975 per maund to Rs 6,775 per maund while ginners of Sindh offered raw grade of lint to the buyers around Rs 5,975 per maund, depending on trash level.

New York Cotton October Futures 2017 contract closed slightly up at 72 cents per pound, December Futures 2017 contract at 72 cents per pound and Cotlook A Index was hovering at 85 cents per pound.