Trading remains bullish at cotton market

December 22, 2012

Cotton Market
Cotton Market

KARACHI: Trading remained brisk with strong physical prices amid firm spot rate, traders at the Karachi Cotton Association (KCA) said on Friday.

The KCA kept the spot rate unchanged at Rs 6,000 per maund to provide support to baseline prices and weak stockholders for getting better prices, floor brokers said.

During the trading session, spinners bought all kinds of lint at Rs 5,700 per maund to Rs 5,850 per maund while those spinning units in Sindh and Punjab stations eager for producing better grade yarn purchased fine grades at around Rs 6,050 per maund in order to strengthen their long positions on back of local as well as foreign yarn orders.
Majority of the sellers in Sindh and Punjab stations offloaded their stocks of all grades on competitive prices at around Rs 5,700 per maund and Rs 5,875 per maund.

Around 18,000 bales changed hands with more than 85 percent of Punjab’s share in trading.

“The New York Futures market remained fundamental in translating international as well as domestic lint prices on back of growing demand by major users besides non-availability of fine lint,” said an analyst. “Buyers made forward deals for all grades on ending week on competitive prices at around Rs 5,550 per maund to Rs 5,650 per maund in Punjab stations.”

Second grade lint was available at around Rs 5,500 per maund in Punjab stations while same grade lint in Sindh was offered at some stations at around Rs 5,450 per maund.

Private sector commercial exporters also made deals on competitive rates to fortify their long positions in Punjab and Sindh station at Rs 5,500 per maund to Rs 5,675 per maund.

New York March 2013 Futures stood at around 75.83 cents per pound and May 2013 Futures at around 76.48 cents per pound. Cotlook A index was hovering around 84.15 cents per pound.

Courtesy: Daily Times

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