Buyers at lint trading remains selective on grade issue

Leading buyer remained cautious in making any big deal as they only made deals on selective note depending on grade issue and their immediate need of lint in anticipation of decline in spot rate during trading session and with firm physical prices at lint market, fibre traders said.

Forward trading for a month period also took place, traders at the Karachi Cotton Association (KCA) said. KCA kept the spot rate intact at Rs 6,800 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level.

During the trading session, buyers in Sindh and Punjab stations made deals for lint on cautious note while sellers offered second grade of lint at around Rs 6,625 per maund to Rs 6,675 per maund on increasing demand and in order to capitalise maximum returns on their proceeds, floor brokers said.

Mills and spinners in Sindh and Punjab stations made deals for better grades on competitive price at around Rs 6,775 per maund to Rs 6,825 per maund while secondary buyers made deals for all grades in Punjab and Sindh stations at around Rs 5,975 per maund to Rs 6,275 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 6,625 per maund to Rs 6,650 per maund. More than 960 bales changed hands with more than 60 percent of Punjab’s share in trading.

While at the Karachi Cotton Exchange on Thursday normal trading was recorded. The spot rates remained unchanged unchanged at Rs6,800/maund (37.324kg) and Rs7,288/40kg. Ex-Karachi rates also stood firm at Rs6,935/maund and Rs7,433/40kg after an addition of Rs135 and Rs145 as upcountry expenses, respectively.

The cotton market recorded three transactions of around 2,500 bales at Rs6,800 to Rs7,100/maund. Haroonabad’s 2,000 bales were sold at Rs7,100/maund on conditional basis, 136 bales of Pakpattan were sold at Rs6,800/maund, while 400 bales of Bahawalpur exchanged hands at Rs7,000/maund.