Trading activity remain firm at cotton market

Trading activity remained firm at the cotton market as mills and spinners bought cotton of all qualities at around Rs 6,675 per maund to Rs 6,725 per maund during the trading session, dealers said. Buyers made deals for better grades of lint on premium prices, as more than 9,000 bales changed hands.
The Karachi Cotton Association (KCA) spot rate remained intact at Rs 6,800 per maund.

The private sector commercial buyers bought second grades of lint at around Rs 6,650 per maund while spinners of Sindh strengthened their long positions. Better grades of lint fetched premium prices on back of shrinking stocks while better grade cottonseed arrival has been moderate with a price level of Rs 3,650 per maund, floor brokers said.

A trader at KCA said that some mills bought better stocks from old crop while market physical prices remained between Rs 6,550 per maund to Rs 6,625 per maund.

A senior trader and fibre analyst, Shakeel Ahmad said that the private sector exporters also brought out their better stocks on premium price level of the market and around 300 bales changed hands in Punjab. Ginneries in Sindh and Punjab stations have geared up their activities in order to meet the growing demand of cotton.

According to KCA, 200 bales of Sanghar changed hands at Rs 6,675 per maund, 200 bales of Hyderabad at Rs 6,325 per maund, 200 bales of Multan at Rs 6,500 per maund, 200 bales of MIrpurkhas at Rs 6,275 per maund and 200 bales of Bahawalpur at Rs 6,650 per maund.

While at Karachi Cotton Exchange normal trading was witnessed on Monday. Spot rates remained unchanged at Rs6,800/maund (37.324kg) and Rs7,288/40kg. Ex-Karachi rates also remained unchanged at Rs6,935/maund and Rs7,433/40kg after an addition of Rs135 and Rs145 as upcountry expenses, respectively.

The cotton market recorded three transactions of around 5,000 bales at a price in between Rs6,775 and Rs7,000/maund. Halani’s 600 bales were traded at Rs7,000/maund, 3,931 bales of Rahimyar Khan at Rs6,850/maund and 200 bales of Khanewal exchanged hands at Rs6,775/maund.