Better volumes of second grade of lint kept trading firm

Better volumes of second grade of lint kept the trading firm, traders at the Karachi Cotton Association (KCA) said on Tuesday. Buyer remained cautious in making any big deal as they only made deals according to their immediate need of lint on back of grade issue and in anticipation of decline in spot rate.

KCA kept the spot rate intact at Rs 5,500 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level, said floor brokers.

At the trading session, buyers in Sindh andPunjab stations bought all grades while sellers offered all grades of lint at around Rs 5,000 per maund to Rs 5,475 per maund in order to capitalize maximum returns on their proceeds, floor brokers said.

Spinners and mills in Sindh and Punjab stations made deals for all grades on competitive price at around Rs 4,975 per maund to Rs 5,225 per maund while general buyers made deals for all grades in Punjaband Sindh stations at around Rs 4,975 per maund to Rs 5,100 per maund, traders said.

Due to grade issue in parts of Sindh and Punjab stations buyers made forward deals for all grades of lint at around Rs 5,175 per maund to Rs 5,300 per maund. More than 200 bales changed hands with more than 60 percent of Punjab’s share in trading.

According to Shakeel Ahmad a fibre analyst, the textile sector is trying to get better benefits of Generalised System of Preferences plus status, which is a positive sign for the cotton sector besides its valuation.

This shows cotton import by textile sector would go up and demand for fine grades would also increase.