Cotton market witnessed selective deals on grade issue

The buyers made selective deals on grade issue and also strengthened their long positions by making forward deals at premium prices, traders at Karachi Cotton Association (KCA) said. KCA kept spot rate unchanged at Rs 6,750 per maund.

Sellers withholding better grades remained in the driving seat due to paucity of premium stuff while KCA remained busy taking steps to provide maximum benefit to the weak stakeholders to capitalise maximum on their raw stuff, floor brokers said.

The mills and spinners purchased better grades at all stations of Sindh and Punjab during the trading session. Majority of the buyers remained quality conscious, however deals changed hands for all grades on competitive price in Sindh and Punjab stations at around Rs 6,000 per maund to Rs 6,500 per maund while production of the lint in the ginneries of Sindh and Punjab remained moderate at around 900 bales, brokers said.

The sellers withholding fine grades at some trading stations were demanding a slightly higher price as some deals changed hands at Rs 6,800 per maund.

The secondary buyers in Punjab and Sindh stations bought all grades of lint at competitive prices while dull influx of fine cottonseed in ginneries put the brakes on production of quality grade of lint. Spinners made deals in second grade stuff at around Rs 6,525 per maund to Rs 6,500 per maund.

Fibre analyst Shakeel Ahmad said that leading buyers are still eyeing domestic better grades, as the import cost is a bit higher.

Second grade of lint for blending purposes changed hands at around Rs 6,550 per maund in Sindh stations while raw grade stuff was available at around Rs 5,975 per maund depending on trash level. More than 360 bales changed hands with more than 60 percent of Punjab’s share in trading. .