Price remain firm at cotton market

During the trading session at the cotton market prices remained firm while grade-conscious buyers made deals on slightly higher price, according to traders at the Karachi Cotton Association (KCA) on Monday.

Floor brokers said that mills in Sindh and Punjab stations bought all grades on cautious note as grade issue was continue. Traders offered all grades of lint on bargaining rates at around Rs 4,975 per maund to Rs 5,275 per maund in order to capitalize maximum returns on their proceeds.

Leading buyer remained cautious and only made deals to meet their immediate need of lint on back of grade issue and in anticipation of decline in spot rate, while spinners in Sindh and Punjab stations made deals for fine grades on competitive price at around Rs 5,525 per maund to Rs 5,600 per maund.

General buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,975 per maund to Rs 5,150 per maund.

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.

Shakeel Ahmad a fibre analyst said that the textile sector is facing dearth of fine grades, that would put positive impact on prices besides its market valuation.

The recent weather in cotton growing belt in Punjab remained suitable for standing crop. The shortage of energy to textile sector was still endangering cotton growers’ selling volumes. However, buyers made forward deals for all grades of lint at around Rs4,950 per manud to Rs5,175 per maund due to grade issue in parts of Sindh and Punjab stations.

More than 200 bales changed hands, of which Punjab shared more than 65 percent share in trading.