The Karachi cotton market witnessed a range-bound trading session with strong physical prices and firm spot rate, traders at the Karachi Cotton Association (KCA) said Monday.
The KCA spot rate stayed firm at Rs 11,800 per maund while physical prices stayed closer to Rs 11,975 per maund amid growing demand, floor brokers said.
The mills irrespective of grade made deals on cash as well as on a month forward delivery basis in Punjab and Sindh stations while deals also changed hands between mills and private sector commercial exporters, they said.
They said ginners in Punjab stations have sped up cottonseed purchase in view of ending stocks besides growers also increased cottonseed price by Rs 200 per maund to Rs 4,100 per maund. Analyst Shakeel Ahmad said the spinning sector particularly in Sindh remained selective and bought fine lint on competitive prices around Rs 12,000 per maund during the trading session.
He said price of fine lint would remain on the higher side in coming days although its demand has been 30 percent of the total transaction during the current season.
Majority of buyers bought lint of all grades on competitive prices in major Sindh and Punjab stations during the trading session.
Majority of the deals in Punjab took place at Rs 11,800 per maund to Rs 11,850 per maund depending on grade during the trading session.
The deals in upper Sindh changed hands above Rs 12,000 per maund while in Punjab textile and spinning sectors remained the volume leaders and made around 90 percent of the total deals to 27,000 bales during the trading session.
Ahmad said the New York futures sustained an upward trend as March futures 2011 touched 171.10 cents per pound and May’s stayed at 164.85 cents per pound while Cotlook A Index touched 197.50 cents per pound. The increase in international market is providing strength to growers in Pakistan and India who are in habit to follow upward trend in price, he added.
Ahmad said China’s entry into the international market has put the prices on firm footings and provided strong ground to Indian traders as the major sellers in cotton market.