Higher demand impact prices at lint market

Buyers anticipating shrinking of better grades and increase in prices, bought better grades of lint in during trading session at leading stations of Punjab and Sindh. Increasing trend in dollar is also a factor that has impact prices of cotton while grade related demand remained on higher side.

Buyers also made forward deals for a month delivery period in order to fortify their inventories during trading session at Punjab and Sindh stations.

Secondary buyers made deals for normal quality of cotton at around Rs 6,350 per maund to Rs 6,375 per maund during trading session in Sindh and Punjab stations.

The ginners remained on driving seat and capitalised their deals on higher prices on back of quality and demand during trading session at major stations of Punjab and Sindh.

Spinners remained frenzy for better grades of cotton and made deals at around Rs 6,775 per maund and Rs 6,800 per maund in order to strengthen their inventories.

Physical prices would remain firm on demand for all grades of cotton that would keep market’s sentiments in positive while bottom line prices likely to stand in firm frame.

Private sector commercial exporters made deals at Rs 6,375 per maund to Rs 6,425 per maund. Raw grades of lint changed hands at Rs 5,975 per maund depending on trash level during trading session.

More than 1,800 cotton bales changed hands while ex-gin price per maund remained firm at Rs 6,800 per maund. In Kerb market trading took place in a range of Rs 6,575 per maund to Rs 6,625 per maund.

At Karachi Cotton Exchange, cotton trading slowed down on Thursday while spot rate increased Rs50 a maund. Spot rate rose to Rs6,850/maund (37.324 kg) and Rs7,341/40-kg. Ex-Karachi rates also increased to Rs6,995/maund and Rs7,496/40-kg after addition of Rs145 and Rs155 as upcountry expenses, respectively.

A total of 16 transactions of around 12,000 bales at a price of Rs6,200 to Rs7,300 a maund were recorded from Saleh Pat, Rohri, Khairpur, Rahimyar Khan, Khanpur, Sadiqabad, Hasilpur, Haroonabad, Fort Abbas and Burewala.

According to an analyst, demand of local cotton increased in the market due to rupee depreciation, as import has become costly.

On global front, New York Cotton Market witnessed an increase on all its futures on Wednesday. New York Cotton December Futures 2017 contract closed at around 74.70 cents per pound.