Spot rate declines by Rs 50 per maund
November 20, 2012
KARACHI: Fine lint remained in focus with brisk trading amid easing spot rate with higher demand of all grades, traders at the Karachi Cotton Association (KCA) said on Monday.
KCA revised the spot rate slightly downward on technical grounds by Rs 50 per maund to Rs 5,900 per maund, floor brokers said. During the trading session, the spinners made deals in all grades to strengthen their long positions in anticipation of grade issue in the next coming trading sessions. The mills in Punjab and Sindh stations made deals for all grades on back of cloth orders from local as well as from foreign buyers, they added.
General buyers purchased lint of all grades on competitive prices at around Rs 6,000 per maund in Punjab stations while in Sindh stations, buyers made deals at Rs 5,900 per maund, brokers added. Buyers with less liquidity in Sindh and Punjab stations made deals for lint of all grades on competitive prices at around Rs 5,375 per maund and Rs 5,650 per maund.
More than 15,000 bales changed hands with more than 80 percent of Punjab’s share in trading. Private sector commercial exporters made deals for all grades on competitive rates at around Rs 5,475 per maund in Sindh and Punjab stations.
“Stable New York Futures market prices and future Chinese buying of yarn from local traders is still a positive sign for the lint market,” said an analyst. “The physical cotton prices are still strong while potential buyers were scoring all grades on back of better orders besides most of the deals changed hands at around Rs 5,975 per maund to Rs 5,995 per maund whereas the cottonseed prices remained intact at Rs 3,000 per maund.”
The sellers withholding raw grades in Punjab and Sindh stations offered their produce at around Rs 4,875 per maund to Rs 4,725 per maund, depending on thresh level.
New York Futures market was improving as its prices on December Futures stood at 73 cents per pound and March 2013 at 72 cents per pound. Cotlook Index A stood at 81 cents per pound.
Courtesy: Daily Times