Fine grade lint remained in focus during past week trading

During trading week at cotton market, fine grade lint demand combined with buyers’ eagerness for fine and second grade cotton for blending purposes kept physical prices firm while spot rate stayed in steady zone. Buyers at major stations of Punjab and Sindh remained busy buying fine grades as demand of better grades was growing on back of producing better textile products while potential buyers made deals for all grades in order to build up their inventories before shrinking fine grade lint, dealers said.

During trading activities sellers demanded slightly higher prices for better grades under slower than expected influx of cottonseed in the ginneries during past week, traders said.

Textile sector remained eager for all grades of lint while fine grade cotton growers were in driving seat as they have sizeable stockpile for dealing on better rates, said Shakeel Ahmad an analyst.

During the past week arrival of better grade cottonseed in limited quantity at Punjab and Sindh stations put general prices firm, while trading remained range-bound on last trading day in all stations.

Fine quality remained in demand in Sindh and Punjab stations while buyers remained eager for all grades, traders said.

During trading sessions most of the ginning units ginned all grades as they produced more than 18,000 bales.

Most of the deals changed hands at around Rs 4,975 to Rs 5,050 per maund while second grade lint fetched around Rs 5,075 per maund. More than 200 bales changed hands during trading session in Punjab and Sindh stations on Saturday.

The spot rate at Karachi Cotton Association (KCA)remained unchanged at Rs 5,500 per maund. KCA readjusted the physical rate on technical grounds by Rs 50 per maund past week in order to provide support to weak stakeholders of raw grade to ward off minimal price level.