The buyers made deals for second grade of lint on slightly higher price amid moderate traded volumes, fibre traders said.
Forward deals also changed hands for better grades while physical prices provided weak sellers to fetch better bottom-line prices. Most of the buyers consolidated their long positions on grade issue while buyers with less liquidity bought better grades according to their immediate need. Weak sellers withholding raw grade of lint offloaded their stocks on better price-parity level.
Lint market sentiments remained modest on selective trading, traders at Karachi Cotton Association (KCA) said.
KCA kept the spot rate at Rs 8,200 per maund in order to help stakeholders withholding raw grades to ward off minimal price level. During the trading session, mills and spinners in Sindh and Punjab stations purchased second grade of lint at around Rs 8,250 per maund, while sellers offered all grades of lint at around Rs 8,025 per maund to Rs 8,375 per maund in order to capitalise maximum returns on their proceeds.
Secondary buyers in Sindh and Punjab stations made deals on competitive price at around Rs 7,975 per maund to Rs 8,125 per maund while private sector commercial exporters made deals for all grades in Punjab and Sindh stations at around Rs 8,000 per maund to Rs 8,050 per maund.
Sellers withholding better grades of old crop offered produce in modest quantity on better price. Shortage of cottonseed might delay ginning activities in parts of Sindh and Punjab.
In Sindh and Punjab stations more than 3,800 bales changed hands with more than 60 percent of Punjab’s share in trading. New York October Futures contract 2018 stood at around 85.36 cents per pound, December Future contract 2018 at 85.39 cents per pound and Cotlook A Index was hovering around 93 cents per pound.
(This news/article originally appeared in Daily Times on September 11th, 2018)