Increasing demand for better grades of lint remained in focus fetched premium price for shrinking stocks of better grades amid firm physical prices. At cotton trading session, it was noticed that both sellers and buyers remained entangled in price war. However, volumes traded were moderate.
In the domestic market around 200 bales of Sanghar changed hands at Rs 6,675 per maund, 100 bales of Hyderabad at Rs 6,375 per maund and 100 bales of Southern Punjab changed hands at Rs 6,625 per maund.
Some buyers to meet domestic as well as international commitments of yarn and cloth made deals for all grades on competitive price at around Rs 5,975 per maund to Rs 6,600 per maund, floor brokers said.
A senior trader, Ghulam Rabbani, said that the market sentiments stood firm and settlement of spot rate by Karachi Cotton Association (KCA) was declared at Rs 6,700 per maund with growing demand of domestic cotton, as currently import prices were on higher side.
The Karachi Cotton Association on Thursday fixed the official spot rate, or base price, for Grade 3 cotton at 7,234 rupees per maund (40 kg). Grade 3 cotton has a staple length of 1-1/16" and micronaire value between 3.8 and 4.9 NCL (no control limits), which represents fine to coarse classes of cotton varieties. In the kerb market, the key crop varieties traded in the range of 7,000 to 6,850 rupees per maund.
Rabbani said that leading spinners purchased better lint on slightly above the spot rate around Rs 6,700 per maund while mills capitalized their long positions in wake of depleting better stocks in the next coming trading sessions.
Around 200 bales of old buffer stocks changed hands with 65 percent share of Punjab traders while traders in Sindh stations made fewer deals for raw grades at around Rs 5,975 per maund depending on trash level.
With the country witnessing production of around 3 million bales below the target 2016-17 crop season, lint import from African traders is seen very much on cards once again.
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