Physical prices remain firm on demand at cotton market

During the trading session in major stations of Punjab and Sindh, the demand of better and second grade of cotton kept physical prices strong. Buyers purchased better grades of cotton at a slightly higher price at around Rs 7,550 per maund to Rs 7,625 per maund.

Buyers bought the commodity at a premium price while ginners made deals for second grade of lint in anticipating paucity in the forthcoming trading sessions at the lint market.

The physical prices would likely remain firm on paucity of better grades arrival of phutti (cottonseed) in ginneries.

Buyers also made forward deals for a month period at around Rs 6,450 per maund and Rs 6,600 per maund in anticipation of paucity of better grades in coming trading sessions.

At Karachi Cotton Association (KCA), spot rate remained firm at Rs 7,600 per maund. According to KCA, 200 bales of Sanghar changed hands at Rs 6,875 per maund, 200 bales of upper Sindh at Rs 7,275 per maund, 200 bales of southern Punjab at Rs 7,575 per maund and 200 bales of Bahawalpur at Rs 7,025 per maund.

Mills and spinners to cater order of quality end products in backdrop of international Frankfurt textile fair were in need of better grades of cotton.

However, the market prices are still in firm zone and buyers with liquidity are consolidating their long positions in making deals for fine lots.