KARACHI: Better grades of lint remained in focus amid firm physical prices while shrinking stocks of better grades fetched premium price during trading, fibre traders said.
Traders said volumes traded were moderate and buyers bought lint of all qualities to meet domestic as well as international commitments of yarn and cloth. A senior trader, Ghulam Rabbani, said the market sentiments stood firm and settlement of spot rate by Karachi Cotton Association (KCA) was declared at Rs 6,700 per maund with growing demand of domestic cotton, as currently import prices were on higher side.
Lint import from African traders was very much on cards once again, as country has witnessed production of around 3 million bales below the target 2016-17 crop season.
Rabbani said leading spinners purchased better lint on slightly above the spot rate around Rs 6,700 per maund while mills capitalised their long positions in wake of depleting better stocks in the next coming trading sessions.
In the domestic market around 200 bales of Sanghar changed hands at Rs 6,675 per maund, 100 bales of Hyderabad at Rs 6,375 per maund and 100 bales of Southern Punjab changed hands at Rs 6,625 per maund. The sellers and buyers remained entangled in price war and buyers made deals for all grades on competitive price at around Rs 5,975 per maund to Rs 6,600 per maund, floor brokers said.
Around 200 bales of old buffer stocks changed hands with 65 percent share of Punjab traders while traders in Sindh stations made fewer deals for raw grades at around Rs 5,975 per maund depending on trash level.
New York May 2017 Futures stood at around 75 cents per pound, July Futures 2017 at 76 cents per pound and Cotlook A Index was hovering around 85 cents per pound.
