Firm trading activity witnessed at cotton market

Trading activity remained firm at cotton market as buyers bought better grades of lint on higher than market physical prices during trading session in Punjab and Sindh stations, keeping sellers in the driving seat.

Buyers made deals in better and second grade of cotton on shrinking stocks. Spinners bought second grade of lint at around Rs 6,500-Rs 6,525 per maund, in parts of Sindh and Punjab stations.

Mills purchased better grades of lint on the back of improved demand from garments and textile made up exporters. Forward deals for a month’s delivery period also changed hands at around Rs 6,425 per maund.

Private sector commercial exporters consolidated their long positions by making forward deals at Rs 6,300-Rs 6,325 per maund. Raw grades of lint changed hands at Rs 5,975-Rs 6,000 per maund, depending on trash level.

Around 2,700 cotton bales changed hands in the range of Rs 6,000-Rs 6,525 per maund, in parts of Sindh and Punjab stations. Ex-gin price of cotton remained intact at Rs 6,050 per maund. In kerb market trading took place in the range of Rs 6,050-Rs 6,375 per maund.

At the Karachi Cotton Exchange on Tuesday, normal trading activity recorded, while spot rates increased Rs50/maund to Rs6,100/maund (37.324kg) and Rs6,537/40kg. Ex-Karachi rates also increased to Rs6,245/maund and Rs6,692/40kg after an addition of Rs145 and Rs155 as upcountry expenses, respectively.

A total of 22 transactions were recorded of around 22,000 bales at a price of Rs6,100 to Rs6,300/maund. Among them, notable deals were recorded from Rohri, Saleh Pat, Khairpur, Nawabshah, Mianwali, Haroonabad, Khanewal, Chichawatni, Bahawalpur and Bahawalnagar.

In the coming trading session, cotton prices predicted to remain firm on the back of improved demand from leading buyers.