Buyers at cotton market were keen on buying fine quality lint

The cotton prices remained stable as buyers in cotton market tried to replenish their stocks with quality lint. Most of the buyers remained busy dealing in fine grades. However, buyers bought all grades during trading session in all stations of Sindh and Punjab, while KCA kept spot rate at Rs 4,950 per maund, traders at Karachi Cotton Association (KCA) said on Wednesday.

The stakeholders in Punjab stations remained eager for fine grades for producing better end products but power outages and load shedding in textile and ginning units slowed down production capacity.

They made deals for immediate use and fine grades sellers were in driving seat due to paucity of stuff while KCA remained busy taking steps to provide maximum benefit to the weak stakeholders to capitalise maximum on their stuff, floor brokers said.

Majority of buyers and sellers remained quality conscious, however deals changed hands for all grades on competitive price in Sindh and Punjab stations at around Rs 4,975 per maund to Rs 5,050 per maund while production of the lint in the ginneries of Sindh and Punjab remained moderate at around 3,600 bales, floor brokers said.

According to fibre analyst Shakeel Ahmad, leading buyers continued eyeing on fine grades, while spinners made deals for fine grades on competitive price. Power and gas shortage disrupted economic activity at textile and ginning units therefore the cotton trading in major areas remained dull.
The general prices of all grades remained on firm footings on daily basis, as deals also changed hands around at Rs 5,075 per maund to Rs 5,075 per maund.

The sellers withholding fine grades in some trading stations were asking slightly higher price as some deals changed hands at Rs 5,225 per maund.
In Punjab and Sindh stations leading buyers made deals for fine grade at around Rs 5,200 per maund to Rs 5,225 per maund on back of growing demand of end product, he added.

The secondary buyers made deals for second grades for blending purposes at around Rs 4,950 per maund to Rs 4,975 per maund while the raw grade stuff was available at around Rs 4,900 depending on trash level.

Private sector commercial exporters in Sindh and Punjab stations made deals for all grades as deals changed hands at around Rs 4,925 per maund to Rs 4,975 per maund.

More than 300 bales changed hands with more than 60 percent of Punjab’s share in trading.

Major deals made on ready counter included: 600 bales from Jhole done at Rs4,200 to Rs4,300, 400 bales Chichawatni at Rs4,875, 600 bale Faqirwali at Rs4,885, 400 bales Sahiwal at Rs4,900, 2,600 bales Hasilpur at Rs4,900 to Rs5,000, 600 bales Chani Goth at Rs5,100, 700 bales Alipur at Rs5,150, 800 bales Dera Ghazi Khan at Rs5,200, 600 bales Sadiqa¬bad at Rs5,200, 1,000 bales Rahimyar Khan at Rs5,200 and 600 bales Mianwali at Rs5,200 to Rs5,250.

On Global front, New York market May 2015 Futures remained under correction and stood at around 61 cents per pound. Cotlook A index was hovering around 68 cents per pound.