Cotton traders at the Karachi Cotton Association (KCA) stated that the cotton trading session was dull at the Karachi cotton market and the spot rate of cotton had increased, towards the end of the last week.
The spot rate of cotton increased from Rs 8,300 per maund to Rs 8,500 per maund, thereby registering an increase of Rs 200 per maund. The physical prices of cotton continued to remain strong as majority of the trading took place at Rs 8,600 per maund.
The major buyers of cotton are keen on buying all grades of cotton lint but information regarding the deficit in the local cotton production as well as increased global cotton prices had warned the buyers to stay alert.
In spite of the ginners being in a strong position, where they could dictate their prices to the buyers, majority of the trading took place after the deals were settled between the traders and buyers in Punjab and Sindh stations. Cotton prices continued to remain firm in the local market as the New York Futures market is still under the correction phase.
The New York March Futures remained at 121.90 cents per pound whereas the May Futures stood at 111.79 cents per pound. Cotlook A Index remained at 148.10 cents per pound.
Majority of the top market players are of the view that cotton prices are not likely to exceed the purchasing power of the buyers and sellers are in support of reasonable prices. The ginning sector of the country is contented with the ample stock of cottonseed that is available with it and this is one reason why the prices are not likely to outshine the average purchasing limits during the trading sessions.
Punjab stations continued to remain the volume leader as over 4,000 bales of cotton were traded and in addition to it fine lint were sold at Rs 8,650 per maund in the trading session. Cotton trading continued to remain dull at majority of the stations in Sindh whereas it had been normal at Punjab stations since trading took place for about Rs 8,000 to Rs 8,450 per maund regardless of the cotton grade.
Fibre2fashion News Desk-India
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