Pakistan: Cotton prices remain under correction on demand for better grades

KARACHI: Better grades of cotton remained in focus as buyers bought commodity on premium price while ginners made deals for second grade of lint in anticipating paucity in coming trading sessions at lint market.Buyers bought better grades of cotton on slightly higher price at around Rs 7,400 per maund to Rs 7,450 per maund during trading session at Punjab and Sindh stations.

The physical prices would likely to remain firm on paucity of better grades arrival of phutti (cottonseed) in ginneries. Buyers also made forward deals for a month period at around Rs 6,750 per maund and Rs 6,900 per maund in anticipation of paucity of better grades in coming trading sessions. Around 3,000 bales changed hands while spot rate at Karachi Cotton Association (KCA) after downward correction remained firm at Rs 7,100 per maund. 

Grade issue of cotton would keep growers and ginning sector on driving seat while better grades of lint changed hands above Rs 7,525 per maund to Rs 7,525 per maund at major Sindh and Punjab stations. Mills and spinners were in need of better grades of cotton in order to cater order of quality end products. The market prices are still in firm zone and buyers with liquidity are consolidating their long positions in making deals for fine lots.

According to KCA, 200 bales of Mirpurkhas changed hands at Rs 6,900 per maund, 200 bales of upper Sindh at Rs 7,125 per maund, 200 bales of southern Punjab at Rs 7,525 per maund and 200 bales of Yazman at Rs 7,325 per maund. The ginners of Punjab and Sindh offered cotton of all grades to buyers around Rs 6,625 per maund to Rs 7,625 per maund while ginners of Sindh offered raw-grade lint to the buyers around Rs 6,000 per maund, depending on trash level. New York Cotton March Future 2018 contract closed at 78 cents per pound and May Future 2018 contract closed at 78 cents per pound. Cotlook A Index was hovering at around 87 cents per pound.


Source: Pakistan Observer, Pakistan
Wednesday, 10 January 2018

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