Normal trading continue at cotton market as prices remain unchanged

The Karachi Cotton Exchange on Wednesday continued with normal trading, while spot rates remained firm at Rs6,350/maund (37.324kg) and Rs6,805/40kg. Ex-Karachi rates also remained unchanged at Rs6,485/maund and Rs6,950/40kg after an addition of Rs135 and Rs145 as upcountry expenses, respectively.

KCE recorded eight transactions of around 3,500 bales from the new crop at a price of Rs6,300 to Rs6,600/maund. Trading stations included Kotri, Shahdadpur, Sinjhoro, Tando Adam and Sanghar from Sindh, while Punjab stations included Pakpattan, Chichawatni and Burewala that received better prices.

But at Karachi Cotton Association (KCA) buyers remained in hunt of second grade of produce during trading session with the depleting stocks of fine grades of lint. KCA kept the spot rate intact at Rs 6,350 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level, said floor brokers.

During the trading session, buyers in Sindh and Punjab stations made forward deals for one month period on cautious note as grade issue was continued. They made deals for better grades at around Rs 6,600 per maund to Rs 6,700 per maund, floor brokers said.

Ginners offered all grades of lint on bargaining rates at around Rs 6,000 per maund to Rs 6,725 per maund in order to capitalise maximum returns on their proceeds.

Spinners remained cautious and only made deals according to their immediate need of lint on back of grade issue and in anticipation of decline in spot rate.

Secondary buyers in Sindh and Punjab stations bought stuff on competitive price at around Rs 6,125 per maund to Rs 6,375 per maund while private sector commercial exporters made deals for all grades in Punjab and Sindh stations at around Rs 5,975 per maund to Rs 6,300 per maund, traders said.

Due to grade issue in parts of Sindh and Punjab stations buyers made forward deals for all grades of lint at around Rs 6,500 per maund. More than 600 bales changed hands with more than 60 percent of Punjab’s share in trading.