Shrinking better cotton grades keeps prices stable

Buyers bought better grades of lint on slightly higher price amid firm physical prices besides forward deals were made in anticipating increase in general prices and on fast depleting of better grades of lint during trading session on lint market. During the trading session, buyers also bought second grade of line at around Rs6,650 per maund for blending purpose.

The Karachi Cotton Association (KCA) kept the spot rate at Rs 6,200 per maund.

According to senior trader, Ghulam Rabbani, leading buyers consolidated their long positions and made deals for second grade of lint paying premium price for it.

The shrinking better grades of lint put general price in firm zone and buyers also made forward deals on slightly higher price at around Rs 6,750 per maund in Sindh and Punjab stations.

The private sector commercial exporters consolidated their long positions and made deals for old stocks, brokers said. The buyers remained selective on grade issue and consolidated their future positions with fresh fine lots also.

Around 200 bales of Sanghar changed hands at Rs 6,650 per maund, 200 bales of Multan at Rs 6,500 per maund, 200 bales of upper Sindh at Rs 6,400 per maund and 200 bales of southern Punjab at Rs 6,575 per maund.

While, at the Karachi Cotton Exchange on Thursday, normal trading continue with spot rates remaining unchanged.

The spot rates stood firm at Rs6,200/maund (37.324kg) and Rs6,645/40kg. Ex-Karachi rates also remained unchanged at Rs6,335/maund and Rs6,790/40kg after an addition of Rs135 and Rs145 as upcountry expenses, respectively.

KCE recorded five transactions of around 5,000 bales of the new crop from Sindh at a price of Rs6,375/maund to Rs6,400/maund. Of these transactions, deals of 1,600 bales were recorded from Tando Adam, 1,000 bales each from Sanghar and Shahdadpur, while 600 bales of Mirpurkhas and 400 bales of Kotri also exchanged hands in the market.

According to analyst, the market would remained steady, but the rates could go down within a few weeks when arrivals will increase from both Sindh and Punjab provinces.