Moderate trading seen on back of brisk demand for fine grant lint

Brisk demand for fine and second grade lint kept trading activity moderate at cotton market on Saturday. Moreover buyers made forward deals in all grades that kept market in firm frame past week, said traders at Karachi Cotton Association (KCA).

The KCA kept the spot rate at Rs 6,500 per maund while fine grade fetched better prices at around Rs 6,600 per maund on higher demand.

Trading at major stations in Punjab and Sindh remained selective on account of demand from textile and spinning sectors besides production of lint remained moderate in major ginning units in the country, traders said.

Improved activities in cotton growing belts also cast positive on trading, as ginning activities at the leading stations in Sindh and Punjab remained active in producing second grade stuff.

According to Shakeel Ahmad, a fibre analyst, the physical price of all grades are still on firm footing as demand for cloth and yarn is on higher side from the buyers of these commodities.

Private sector commercial exporters purchased all grades at Rs 4,975 per maund to Rs 5,125 per maund while majority of mills and spinners only made some forward deals in all grades at Rs 4,975 per maund to Rs 5,575 per maund in order to store stocks for rainy days.

During trading sessions buyers made deals on back of shrinking stocks of all grades at around Rs 5,225 per maund to Rs 5,750 per maund in Sindh and Punjab stations.