With focus on fine grade, trading remained moderate at cotton market

At the cotton trading session, buyer remained cautious in making any big deal as they only made deals according to their immediate need of lint on back of grade issue and in anticipation of decline in spot rate.

Buying remained selective with moderate volumes on grade issue of lint while market’s sentiments were steady with forward trading, traders at the Karachi Cotton Association (KCA) said on Thursday.

KCA kept the spot rate intact at Rs 5,500 per maund in order to provide support to weak stakeholders of raw grade to ward off minimal price level, said floor brokers.

Spinners in Sindh and Punjab stations purchased lint of all grades while sellers offered all grades of lint at around Rs 5,000 per maund to Rs 5,375 per maund in order to capitalize maximum returns on their proceeds.

Mills in Sindh and Punjab stations made deals for all grades on competitive price at around Rs 4,975 per maund to Rs 5,250 per maund while general buyers made deals for all grades in Punjab and Sindh stations at around Rs 4,975 per maund to Rs 5,025 per maund.

According to Shakeel Ahmad a fibre analyst, textile sector is striving hard to get maximum benefits of Generalised System of Preferences plus status, which is a positive sign for the sector besides cotton valuation.

This shows cotton import by textile sector would go up and demand for fine grades would also increase.

More than 200 bales changed hands with more than 60 percent of Punjab’s share in trading.

Due to grade issue in parts of Sindh and Punjab stations buyers made forward deals for all grades of lint at around Rs 4,975 per maund to Rs 5,300 per maund.