Moderate trading at cotton market amid strong physical prices

Moderate trading activity witnessed at the cotton market amid strong physical prices with around 9,000 bales changed hands. While, at the Karachi Cotton Association (KCA) spot rate unchanged at Rs 6,700 per maund, fibre traders said.

Leading buyers remained eager for quality lint and bought fine lots on slightly higher prices during the trading session.

According to senior trader, Ghulam Rabbani, leading buyers were concentrating on better grades and the ginning units kept maintaining quality as big groups were making deals for future needs.

The market is in steady tones and mills are buying more in order to consolidate their long positions with fresh better grades of lint. Spinners made deals for second grade of lint for blending purpose while private sector commercial exporters bought better grades on premium price

According to brokers, 200 bales of upper Sindh changed hands at Rs 6,550 per maund, 200 bales of Rahimyar Khan at Rs 6,575 per maund, 200 bales of southern Punjab at Rs 6,525 per maund and 200 bales of Bahawalpur at Rs 6,750 per maund.

At the Karachi Cotton Exchange on Wednesday trading remained slow, while spot rates increased Rs100/maund. The spot rates rose to Rs6,800/maund (37.324kg) and Rs7,288/40kg. Ex-Karachi rates also increased to Rs6,935/maund and Rs7,433/40kg after an addition of Rs135 and Rs145 as upcountry expenses, respectively.

Only three transaction of 1,000 bales were recorded, amid a price of Rs6,800/maund to Rs6,990/maund. Bhakar’s 200 bales were sold at Rs6,800/maund, 400 bales of Khanewal exchanged hands in between Rs6,825 to Rs6,850/maund, while 400 bales of Khanpur were traded at Rs6,990/maund.

According to an analyst, spot rates increased as very little stocks were left with the ginners and the new crop would be delayed, while demand by small mills remained intact.