KARACHI: Lint trading remained on firm footing with steady spot rate on better grades. Besides, the demand for all grades of lint helped maintain the trading activities in the comfort zone during the past week, traders said on Saturday.
The demand for fine grade combined with buyers’ eagerness pushed the spot rate up by Rs 50 per maund to stay at Rs 6,950 per maund, traders at the Karachi Cotton Association (KCA) said.
The KCA kept the spot rate unchanged in order to provide support to weak stakeholders of raw grade to ward off minimal price level, said floor brokers. Trading in major stations of Punjab and Sindh remained firm with growing demand of better grades, while potential buyers made deals for all grades in order to fortify their inventories before any further grade issue, traders said. Trading activities reportedly remained steady with fine lint in focus under moderate influx of cottonseed in the ginneries during the past week. Also during the past week, arrival of better grades of cottonseed in Punjab and Sindh stations put the general prices in the firm frame, while trading remained steady on the last trading day (Saturday) in all stations, floor brokers said. More than 3,000 bales changed hands during the trading session in Punjab and Sindh stations on Saturday. Most of the deals changed hands at around Rs 6,275 to Rs 6,575 per maund, while second grade lint fetched around Rs 6,100 per maund, traders said. Fine quality remained in demand in Sindh and Punjab stations, while buyers remained eager for all grades, traders said. The grade issue, particularly in Sindh stations, due to reports of virus put some pressure on trade by leading buyers, while the general buyers bought all grades of lint at Rs 6,150 per maund to Rs 6,175 per maund.
Textile products’ export on the back of granting Generalised System of Preferences (GSP) will benefit cotton growers, besides it will put lint prices on the stronger side, said Shakeel Ahmad, an analyst. Traders said that the demand for fine lint remained on the higher side in all stations of Sindh and Punjab during the six trading sessions. During the six trading sessions, most of the units ginned all grades, as they produced more than 100,000 bales. The New York May 2014 Futures closed at around 83 cents per pound and Cotlook A index was hovering around 92 cents per pound.
KARACHI: The index at the Karachi capital market witnessed a downfall during the outgoing week as ...