Pakistan Cotton Ginners Association (PCGA) sources said here on Friday that the trading in the commercial capital of the country remained range bound amid firm spot rate and resumption of more ginning activities in Sindh after rains.
Sources said that spot rate of cotton remained intact at Rs 7,400 per maund while physical prices stayed around at Rs 7,500 per maund. The sources said mills and spinners in Punjab and Sindh stations bought lint of all grades to fulfil their immediate needs. After rains around 70 spinning units in Sindh resumed their ginning activities while cottonseed was available around Rs 2,100 per maund to Rs 3,200 per maund depending on grade, said Shehzad Ali Khan, a senior ginner. He said the buyers were facing grade problem in Sindh due to wet conditions so the lint spot rate would likely to pass through downward correction in the next coming trading sessions.
He said second grade lint also changed hands in Sindh around Rs 6,700 per maund to Rs 6,800 per maund while exporters remained on sideline due to grade problems. Shehzad Ali Khan said before rains Sindh stations received around 750,000 bales of cotton and still there was plenty of cottonseed arrival in Punjab and Sindh stations.
The ginning units in Sindh will have to buy cottonseed from Punjab for blending purposes, as grade was an issue in Sindh due to recent rains. The buyers in Sindh and Punjab stations made deals on competitive price around Rs 7,500 per maund and Rs 7,450 per maund respectively, depending on grades. Khan said New York Futures market remained firm as October stayed high at 113.39 cents per pound and December stood at 113.67 cents per pound. Cotlook A index closed at 122 cents per pound.
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