Moderate trading activity seen with firm cotton prices

Moderate trading activity witnessed at the cotton market, as more than 9,000 bales changed hands. Dealers said that the leading mills and spinners purchased cotton of all qualities during the trading session.

The Karachi Cotton Association (KCA) spot rate remained intact at Rs 6,700 per maund. While, the physical market prices remained between Rs 6,350 per maund and Rs 6,600 per maund.

The mills bought quality cotton on slightly higher rates while spinners of Sindh strengthened their long positions.

Floor brokers said that better grades of lint fetched premium price at around Rs 7,000 per maund while second grade of lint changed hands at Rs 6,600 per maund.

According to a senior trader and fibre analyst, Shakeel Ahmad, the private sector exporters had exported around 100,000 bales during past crop season, mostly to Far East countries. Ginneries in Sindh in order to meet the growing demand of cotton had geared up their activities.

He said that cotton prices were expected to increase by around 10 percent in open market, as cotton demand would increase.

Some mills placed orders for import of cotton, said a trader.

According to KCA, following deals changed hands: 200 bales of Dera Ghazi Khan changed hands at Rs 6,575 per maund, 100 bales of Alipur at Rs 6,300 per maund, 200 bales of Multan at Rs 6,400 per maund, 200 bales of Sanghar at Rs 6,700 per maund and 200 bales of Bahawalpur at Rs 6,450 per maund.