Buying remained moderate on cotton market on back of grade issue and slow ginning and buying activities, fibre traders said.
However second grade of lint changed hands at around Rs 8,225 per maund and deals also matured on a month forward deal in a southern Punjab station, floor brokers said. The cotton seed arrival has now been stable and initial bottom-line price of Rs 3,500 per maund has attracted buyers to make deals. The sellers withholding fine grades of lint in order to capitalise premium price kept themselves on sidelines, fibre dealers said.
The Karachi Cotton Association (KCA) spot rate stayed stable at Rs 8,300 per maund with moderate volumes, while majority of the stakeholders remained indulged in price war, floor brokers said.
The better grades of lint would make inroad as demand from leading spinners and mills at Sindh and Punjab stations remained intact.
Brokers said during trading session around 600 bales changed hands with a range of Rs 7,975 per maund to Rs 8,375 per maund in Punjab and Sindh stations.
Ginners in Sindh and Punjab stations remained engaged in price war with the buyers on issue of better grade of lint besides growing demand of second grade of lint kept market sentiments on higher side despite shrinking domestic fine stocks.
Ginners of Punjab offered lots around Rs 7,950 per maund and Rs 8,450 per maund to the buyers, while they offered their better produce on competitive prices at around Rs 8,475 per maund. Raw grades of lint changed hands around at Rs 6,975 per maund, depending on trash level.
The secondary buyers made deals for all grades of lint around at Rs 7,575 per maund while the raw cotton of Sindh was traded around Rs 6,975 per maund.
Market sentiments would remain positive after couple of days, while ginners withholding better grades of lint would fetch better price and the general prices would also go further up in coming days.
Last night New York October Futures contract 2018 contract closed at 85.18 cents per pound, while December Futures contract 2018 contract closed at 85.36 cents per pound. The Cotlook A Index settled at 93 cents per pound.
(This news/article originally appeared in Daily Times on September 18th, 2018)