Demand remains high for better grades of cotton

Trading activity at lint market remains selective on grade issue while some buyers made deals on slightly high price on shrinking better grades of lint that also kept general prices in green zone. Also some deals were made for second grade stuff on premium price.

Some of the leading buyers in Sindh and Punjab stations during trading session made forward deals on slightly higher price at around Rs6,725 per maund for consolidating inventories, floor brokers said.

Floor brokers said that buyers also made deals for all grades besides deals for fine and second grade lint for blending purpose changed hands at around Rs 6,550 per maund to Rs 6,650 per maund during the trading session.

As per analyst, an increase in the arrivals resulted in decline in prices.

At the Karachi Cotton Exchange on Wednesday active trading continued, while spot rates fell Rs50/maund. The spot rates decreased to Rs6,200/maund (37.324kg) and Rs6,645/40kg. Ex-Karachi rates also dropped to Rs6,345/maund and Rs6,800/40kg after an addition of Rs145 and Rs155 as upcountry expenses, respectively.

KCE recorded 23 transactions of around 20,000 bales at a price of Rs6,100 to Rs6,350/maund. Transactions were recorded from Mirpurkhas, Sanghar, Hyderabad, Kotri, Shahdadpur, Tando Adam, Maqsoodo, Hala, Kot Ghulam Mohammad, Sinjhoro, Bakhar, Hasilpur, Sahiwal, Chishtian, Jahanian, Arifwala, Haroonabad, Bahawalnagar, Chichawatni, Burewala, Samundri and Mongi Bangla

At the Karachi Cotton Association (KCA) spot rate remained intact at Rs 6,250 per maund. According to KCA, 200 bales of Nawabshah changed hands at Rs 6,450 per maund, 200 bales of Hyderabad at Rs 6,375 per maund, 200 bales of upper Sindh at Rs 6,400 per maund and 200 bales of southern Punjab at Rs 6,650 per maund.

According to a senior trader, Ghulam Rabbani, spinners strengthened their long positions and made deals for better and second grade of lint on paying premium price. The private exporters bought better grades of lint from buffer old stocks of lint. The buyers remained selective on grade issue and consolidated their future positions with fresh fine lots also.

In domestic market buyers remained eager for quality lint on the back of growing demand of end products. While, in the mills in Punjab bought cotton of all grades at around Rs 5,975 per maund to Rs 6,700 per maund while ginners of Sindh offered raw grade of lint to the buyers around Rs 5,975 per maund depending on trash level.