KARACHI: Lint prices stood firm on improved demand for fine and second grade of lint with firm physical prices, traders said.
Sellers withholding raw grades of lint offloaded their stuff to capitalise maximum financial benefits, they added.
Physical price of lint would remain firm while better grades of lint fetch premium price on back of shrinking stocks while demand for better and second grade of lint would remain on higher side, floor brokers said.
Mills consolidated their long positions by striking deals for better grades of lint at around Rs 6,625 per maund as they were in need of fine quality for cloth production.
Private sector commercial exporters bought all grades of lint at around Rs 5,975 per maund to Rs 6,325 per maund.
Lint prices would remain within reach of buyers before arrival of imports therefore buyers with liquidity engaged in making forward deals for better grades of lint, brokers said.
At some stations in Punjab trading remained moderate and buyers made selective buying while second grade changed hands at around Rs 6,650 per maund, floor brokers said.
Buyers in southern Punjab stations made one month forward deals from old stocks while fine grade changed hands at around Rs 6,775 per maund, floor brokers said.
Buyers’ selective deals for all grades put market price stable in parts of upper Sindh and sellers having fine grades remained in driving seat.
Deals in Punjab and Sindh stations also changed hands at around Rs 6,425 per maund to 6,575 per maund, traders at the Karachi Cotton Association (KCA) said.
KCA kept spot rate at Rs 6,750 per maund in order to provide support to sellers holding raw stocks to capitalise on their deals, said floor brokers.
Domestic buffer stocks of better old crop would determine the price of imported lint on its arrival on port, said Shakeel Ahmad a fibre analyst.
More than 900 bales changed hands with more than 60 percent of Punjab’s share in trading.
New York May 2017 Futures stood at around 75.96 cents per pound, July Futures 2017 at 76 cents per pound and Cotlook A index stood firm at 85 cents per pound.
