Cotton prices remain firm with better lint remaining in focus

Trading session at Punjab and Sindh stations, cotton prices remained firm, according to traders at the Karachi cotton market. While the Karachi Cotton Association (KCA) spot rate remained intact at Rs 6,750 per maund with better lint remaining in focus.

Shrinking stocks of better quality forced buyers to pay premium prices on deals and domestic sellers also began demanding slightly higher prices.

Ginners from Punjab offered quality cotton to buyers – above Rs 6,800 per maund – while ginners from Sindh offered raw lint to buyers at around Rs 5,975 per maund, depending on the trash level.

According to Senior trader Ghulam Rabbani, volumes remained thin with growing demand for better lint on slightly higher prices by the textile export sector during the trading session.

He shared that the spinning sector was eager for better quality lint as there was growing demand for end product on the domestic front.

Ginners withholding better grades of lint remained steadfast not to bow down before the buyers’ offers, as they were confident that the general price would go above the spot rate.

Millers bought around 500 bales of cotton in Punjab stations at around Rs 6,775 per maund, floor brokers reported.

In the local market, around 200 bales of southern Punjab changed hands at Rs 6,650 per maund, about 100 bales of upper Sindh at Rs 6,575 per maund, 100 bales on ex-Karachi basis at Rs 6,470 per maund, and 100 bales of upper Sindh were sold at Rs 6,275 per maund.

There were signs that leading mills and spinners would likely go for import quality cotton in the near future in order to meet demands with the depletion of better domestic grades.