Moderate trading seen at cotton market with firm spot rate

At cotton market, moderate trading was seen as buyers remained cautious in making any big deal as they only made deals according to their immediate need of lint on back of grade issue and in anticipation of decline in spot rate, traders at the Karachi Cotton Association (KCA) said on Wednesday.

KCA kept the spot rate intact at Rs 5,650 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level, said floor brokers.

Mills in Sindh and Punjab stations purchased lint on cautious note on grade issue while sellers offered all grades of lint at around Rs 5,150 per maund to Rs 5,625 per maund in order to capitalize maximum returns on their proceeds, floor brokers said.

Spinners in Sindh and Punjab stations bought all grades on competitive price at around Rs 4,975 per maund to Rs 5,375 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,975 per maund to Rs 5,025 per maund.

Shakeel Ahmad a fibre analyst said that the textile sector is the major beneficiary from Generalised System of Preferences plus status, which is a positive sign for the sector besides cotton valuation. This shows cotton production and demand by textile sector would go neck and neck and demand for fine grades would increase.

In parts of Sindh and Punjab stations buyers due to grade issue made forward deals for all grades of lint at around Rs 4,950 per maund to Rs 4,975 per maund. More than 200 bales changed hands with more than 60 percent of Punjab’s share in trading.