Trading remains range-bound amid firm spot rate

KARACHI: Trading at cotton market remained range-bound with strong physical price and firm spot rate, traders at Karachi Cotton Association (KCA) said Wednesday.
The KCA spot rate stood firm at Rs 9,900 per maund while majority of the sellers and buyers remained entangled in a price war in Punjab and Sindh stations, floor brokers said.
They said ginning activities in different parts of Sindh and Punjab stations remained below par due to slow arrival of cottonseed.
However leading buyers in Punjab stations remained eager for fine lint and made deals above Rs 10,450 per maund, dealers said.
They said most of the deals took place at Rs 9,950 per maund to Rs 10,350 per maund depending on grade during the trading session.
Punjab stations remained volume leader as buyers made around 90 percent of the total deals to 19,800 bales on competitive prices during the trading session.
During the fortnight cotton arrival till January 15, 2011, it shows a healthy sign as country receives 1.47 million bales more as compared to the same period last fortnight, fibre analyst Shakeel Ahmad said.
He said a month for cottonseed picking was left in Punjab and there was hope that country could receive another 1.5 million bales of cotton.
The New York March Futures was hovering around 150.44 cents per pound with an increase of 100 points and May Futures touched 145.35 cents per pound with 100 points up while Cotlook A Index stood at 172.10 cents per pound.
Ahmad said Punjab stations remained major buyers of the fine lint as about 2,700 bales changed hands while deals for Sindh raw cotton stood at 2,000 bales during the trading session.

(Source: http://www.dailytimes.com.pk/default.asp?page=2011\01\20\story_20-1-2011_pg5_14)