Cotton trading activity likely to remain slow for a couple of months

At the Karachi Cotton Exchange slow trading continued on Thursday, while spot rates stood firm at Rs6,750/maund (37.324kg) and Rs7,234/40kg. Ex-Karachi rates also remained unchanged at Rs6,885/maund and Rs7,379/40kg after an addition of Rs135 and Rs145 as upcountry expenses, respectively.

The cotton market recorded only two transactions of 1,400 bales at Rs6,900 to Rs6,970/maund. Sadiqabad’s 1,000 bales were sold at Rs6,900/maund, while 400 bales of Noorpur Noranga exchanged hands at Rs6,970/maund.

According to fibre traders, cotton trading in Sindh and Punjab stations remained selective on grade issue with higher demand for fine grades of lint while volumes of second grade lint traded remained on higher side.

Leading and general buyers remained busy making deals in all grade in major Punjab and Sindh stations that kept trading moderate at most of the stations and traders at Karachi Cotton Association (KCA) also made sizeable deals during trading activity.

KCA kept the spot rate at Rs 6,750 per maund in order to provide support to raw grade sellers for getting better prices, floor brokers said.

During the trading session, mills and spinners made deals for better grades of lint at around Rs 6,625 per maund to Rs 6,675 per maund while mills bought second grade of lint for immediate use at around Rs 6,575 per maund, floor brokers said.

According to Shakeel Ahmad a fibre analyst, grade issue would remain intact, while weather is suitable for standing crop besides cottonseed would not be in plenty, however some stations were producing fine grade cottonseed in limited quantity.

Secondary buyers made deals for all grades on competitive prices at around Rs 5,975 per maund to Rs 6,125 per maund while buyers with less liquidity made deals in all grades in Punjab stations at around Rs 5,975 per maund.

Tight cottonseed arrival into ginneries due to slower picking and inadequate supply of fine grades kept ginning on slower pace in Punjab and Sindh stations besides prices of all grades remained at the hands of sellers on back of shrinking stocks.

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