Trading activity remains moderate amid firm spot rate at cotton market

The trading activities remained firm in cotton market with strong spot rate amid higher demand for fine grades, traders at Karachi Cotton Association (KCA) said on Friday. The buyers and sellers were entangled in price war while deals for all grades changed hands on competitive prices in Sindh and Punjab stations at around Rs 5,000 per maund to Rs 5,400 per maund while production of the lint in the ginneries of Sindh and Punjab remained moderate, however around 3,960 bales were produced, floor brokers said.

The KCA kept the spot rate unchanged at Rs 5,500 per maund in order to support sellers having lower grades to maximise better prices on their stocks, traders added.

Growing demand for all grades in Punjab and Sindh stations remained a basic point and providing strength to the overall prices of lint. The sellers withholding raw grades during trading stations asked slightly lower rates at around Rs 4,975 per maund in order to fetch maximum price, said floor brokers.

The overall prices of all grades remained on firm footings on stable demand as several changed hands at around Rs 5,225 per maund to Rs 5,625 per maund.

In Punjab and Sindh stations spinners purchased all grades of lint at around Rs 5,000 per maund to Rs 5,125 per maund on back of growing demand of yarn.

Exporters in Sindh and Punjab purchased all grades as deals changed hands at around Rs 5,000 per maund to Rs 5,050 per maund.

Floor brokers said that the secondary buyers made deals for all grades of lint including second grades for blending purposes at around Rs 5,000 per maund to Rs 5,125 per maund while the raw grade stuff was available at around Rs 4,975 per maund depending on trash level.

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