Buying remains dull at lint market on back of grade issue, physical price firm

Dull trading was seen at lint market as buyers made deals on slightly higher price according to their immediate need of lint on back of grade issue and in anticipation of decline in spot rate, while physical price stood firm, floor brokers said.

KCA kept the spot rate intact at Rs 5,750 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level.

During the trading session, leading buyers in Sindh and Punjab stations bought all grades on cautious note as grade issue. Traders offered all grades of lint on bargaining rates at around Rs 4,975 per maund to Rs 5,475 per maund in order to capitalize maximum returns on their proceeds. More than 200 bales changed hands with more than 65 percent of Punjab’s share in trading.

Mills in Sindh and Punjab stations made deals for fine grades on competitive price at around Rs 5,550 per maund to Rs 5,625 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,975 per maund to Rs 5,125 per maund, traders said.

According to Shakeel Ahmad a fibre analyst, textile sector is facing dearth of fine grades, that would put positive impact on prices besides its market valuation. The recent weather in cotton growing belt in Punjab remained suitable for standing crop. The shortage of energy to textile sector was still endangering cotton growers’ selling volumes.