Buyers stayed busy dealing in fine grades amid range-bound trading

Majority of buyers remained busy dealing in fine lint grades as trading remained range bound in cotton market. 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 capitalize maximum on their stuff, floor brokers said on Thursday.

During trading session in all stations of Sindh and Punjab, buyers made deals for all grades. 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.

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 4,950 per maund to Rs 5,075 per maund while production of the lint in the ginneries of Sindh and Punjab remained moderate at around 3,900 bales.

According to fibre analyst Shakeel Ahmad, leading buyers were still eyeing on fine grades, while mills bought 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, he added.

The general prices of all grades remained on firm footings on daily basis, as deals also changed hands around at Rs 5,000 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 5,200 per maund.

In Punjab and Sindh stations leading buyers made deals for fine grade at around Rs 5,100 per maund to Rs 5,125 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 4,925 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 4,900 per maund to Rs 4,950 per maund.

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

Karachi Cotton Association (KCA) kept spot rate at Rs 5,000 per maund, traders said.

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 69 cents per pound.