Trading remained dull due to lack of fine grade past week at cotton market

During past week, trading remained dull due to lack of fine and second grade and power outages at ginneries, textile units kept activities dull and buyers made deals for all grades on cautious note besides demand for fine grades remained higher in order to fortify their inventories, floor brokers said.

The forward deals were made on back of grade issue at around Rs 4,925 per maund to Rs 4,950 per maund, traders said on Saturday.
Buyers remained eager for fine grades at main stations of Punjab and Sindh, while majority of the ginneries produced all grades on back of moderate influx of cottonseed.

Prices remained within reach of buyers amid some cautious activity, floor brokers said. The Karachi Cotton Association (KCA)’s spot rate kept spot rate at Rs 4,650 per maunded.

During trading sessions spinners bought fine grade while other buyers remained entangled in price war due to slower arrival of cottonseed on shrinking of better grade.

The trade people said that the price stability in cottonseed would provide an opportunity to the ginners to start bargaining, but most of them would prefer to negotiate on normal terms.

According to Shakeel Ahmad a fibre expert, prices of better grade cotton would likely to go up and stay at around Rs 5,000-5,025 per maund, as most of the leading ginners would bring out stockpile of better grades. This would probably due to the demand from textile sector for production of textile made ups and garments and reportedly there would be no plenty of better grade by July-end.

During past week arrival of better grade cottonseed at Punjab and Sindh stations remained thin and general prices stood in firm frame, while trading on Saturday remained dull in all stations.

During trading sessions most of the medium sized ginning units (18) ginned all grades as they produced more than 15,900 bales.
During trading session in Punjab and Sindh stations around 200 bales changed hands. Most of the deals changed hands at around Rs 4,800 to Rs 4,900 per maund while second grade lint fetched around Rs 5,000 per maund.