Focus on fine grade lint was seen during trading week

During trading week, fine grade demand combined with buyers’ eagerness for fine and second grade cotton for blending purposes kept physical prices on firm footings. 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.

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 fortify their inventories before shrinking fine grade lint.

Karachi Cotton Association (KCA) kept the spot rate at Rs 5,150 per maund.

KCA readjusted the physical rate on technical grounds by Rs 100 per maund past week in order to provide support to weak stakeholders of raw grade to ward off minimal price level.

According to analyst, Shakeel Ahmad, 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.

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.

More than 200 bales changed hands during trading session in Punjab and Sindh stations on Saturday. Most of the deals changed hands at around Rs 4,975 to Rs 5,025 per maund while second grade lint fetched around Rs 5,000 per maund, traders said.

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

During trading sessions most of the ginning units ginned all grades as they produced more than 15,000 bales.

On global front, the New York July 2015 Futures closed at around 60 cents per pound and Cotlook A index was balancing around 69 cents per pound.