Leading buyers remained grade conscious at cotton market

Leading buyers at cotton market remained grade conscious and only made deals on slightly higher price according to their immediate need of lint. Selective buying in lint market kept physical prices firm, said traders at the Karachi Cotton Association (KCA) on Monday.

During the trading session, mills in Sindh and Punjab stations purchased all grades on cautious note as grade issue was continue. Traders offered all grades of lint on bargaining rates at around Rs 4,675 per maund to Rs 4,975 per maund in order to capitalise maximum returns on their proceeds, floor brokers said.

KCA kept the spot rate intact at Rs 5,500 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level.

Spinners in Sindh and Punjab stations made deals for fine grades on competitive price at around Rs 5,575 per maund to Rs 5,700 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,925 per maund to Rs 5,375 per maund, traders said.

According to Shakeel Ahmad a fibre analyst, the textile sector is facing dearth of fine grades, that would put positive impact on prices besides its market valuation.

The recent weather in cotton growing belt in Punjab remained suitable for standing crop. The shortage of energy to textile sector was still endangering cotton growers’ selling volumes.

Due to grade issue in parts of Sindh and Punjab stations buyers made forward deals for all grades of lint at around Rs 4,900 per maund to Rs 5,250 per maund.

More than 200 bales changed hands with more than 60 percent of Punjab’s share in trading.