Slow pace of trading as buyers made selective deals for second grade lint

A slow pace of trading in the lint market witnessed as buyers made selective deals for second grade of lint, while forward deals were also made for better grades, traders said.

During the trading session, spinners and mills in Sindh and Punjab stations made deals for second grade lint, while sellers offered all grades of lint at around Rs 5,975 per maund to Rs 6,775 per maund in order to capitalise maximum returns on their proceeds.

Spinners in Sindh and Punjab stations bought all grades on competitive prices at around Rs 6,000 per maund to Rs 6,575 per maund while secondary buyers made deals for all grades in Punjab and Sindh stations at around Rs 5,975 per maund to Rs 6,275 per maund, brokers reported.

Buyers with less liquidity purchased better grades according to their immediate needs while weak sellers withholding raw grades of lint offloaded their stocks on better price-parity level. According to traders at the Karachi Cotton Association (KCA), lint market sentiments remained firm on forward trading.

KCA kept the spot rate at Rs 6,800 per maund in order to help weak stakeholders withholding raw grades to ward off the minimal price level. The Karachi Cotton Association on Wednesday fixed the official spot rate, or base price, for Grade 3 cotton at 7,288 rupees per maund (40 kg). Grade 3 cotton has a staple length of 1-1/16″ and micronaire value between 3.8 and 4.9 NCL (no control limits), which represents fine to coarse classes of cotton varieties.

In the kerb market, the key crop varieties traded in the range of 6,825 to 7,000 rupees per maund.

According to fibre analyst, Shakeel Ahmad, sellers withholding better stocks from old crop offered produce in modest quantities for better prices.

In parts of Sindh and Punjab, stations buyers made forward deals for all grades of lint at around Rs 6,275 per maund to Rs 6,425 per maund. More than 600 bales changed hands with more than 60 percent of Punjab’s share in trading.

Due to a decline in cotton output by more than 3 million bales this end-crop season, buyers are beginning to eye imports.