KARACHI: Lint prices remained strong on improved demand for fine and second grade of lint amid firm spot rate, traders said. However, sellers withholding low grade lint offloaded their stuff to capitalise maximum financial benefits.
Physical price of lint would remain strong and better grades fetch premium price on back of depleting stocks and demand for second grade of lint would remain high, floor brokers said.
Mills consolidated their long positions by making deals for better grade of lint as they are in need of fine grades for cloth production.
Private sector commercial exporters also purchased all grades of lint at around Rs 5,975 per maund to Rs 6,275 per maund.
Lint prices would remain within reach of buyers before arrival of imports therefore buyers with liquidity engaged in making deals for better grades of lint, brokers said.
At some stations in Punjab trading remained moderate and buyers made selective buying while second grade changed hands at around Rs 6,475 per maund, floor brokers said.
Buyers in southern Punjab stations made one month forward deals from old stocks while fine grade changed hands at around Rs 6,575 per maund, floor brokers said.
Buyers’ selective deals for all grades put market price stable in parts of upper Sindh and sellers having fine grades remained in driving seat.
Deals in Punjab and Sindh stations also changed hands at around Rs 6,125 per maund to 6,425 per maund, traders at the Karachi Cotton Association (KCA) said.
KCA kept spot rate at Rs 6,250 per maund in order to provide support to sellers holding raw stocks to capitalise on their deals, said floor brokers.
Domestic buffer stocks of better old crop would determine the price of imported lint on its arrival on port, said Shakeel Ahmad a fibre analyst.
More than 630 bales changed hands with more than 60 percent of Punjab’s share in trading.
New York March 2017 Futures stood at around 70.36 cents per pound, May Futures 2017 at 70.92 cents per pound and Cotlook A index stood firm at 70 cents per pound.
