Cotton price remain firm

Trading activity at the Karachi Cotton Exchange on Thursday remains dull due to monsoon rains in the cotton growing areas of Sindh and Punjab with only single transaction of 200 bales of Sanghar at Rs6,300/maund recorded in the cotton market.

The spot rates remained firm at Rs6,300/maund (37.324kg) and Rs6,752/40kg.Ex-Karachi rates also stood unchanged at Rs6,435/maund and Rs6,897/40kg after an addition of Rs135 and Rs145 as upcountry expenses, respectively.

According to an analyst, the trading activity might remain slow in the coming days, as well, as more rains are predicted.

While, at the Karachi Cotton Association (KCA), leading buyers made cautious deals on grade issue at lint market and majority of buyers remained eager for second grade of lint, said traders.

KCA kept the spot rate intact at Rs 6,300 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level, said floor brokers.

During the trading session, buyers in Sindh and Punjab stations made forward deals for better cotton while sellers offered all grades of lint at around Rs 6,000 per maund to Rs 6,750 per maund in order to capitalise maximum returns on their proceeds, floor brokers said.

Buyer remained cautious in making any big deal as they only made deals according to their immediate need of lint on back of grade issue and in anticipation of decline in general prices.

Spinners in Sindh and Punjab stations bought all grades on competitive price at around Rs 6,075 per maund to Rs 6,425 per maund while secondary buyers made deals for all grades in Punjab and Sindh stations at around Rs 5,975 per maund to Rs 6,200 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 6,300 per maund to Rs 6,575 per maund.

More than 600 bales changed hands with more than 60 percent of Punjab’s share in trading. 200 bales of Sanghar changed hands at Rs 6,525 per maund, 200 bales of Rahimyar Khan at Rs 6,425 per maund and 200 bales of southern Punjab changed hands at Rs 6,500 per maund.

Shakeel Ahmad a fibre analyst said that the textile sector is in hot water as imported lint has been late and needs certification from Sanitation Department on suspicion of present of virus, If there is any such doubt, sprays and insecticides are there to tackle with the situation, he added.

This shows textile sector would face around 30,000 bales of lint immediate shortfall in 3-month period and demand for fine grades would also increase.