Cotton market observes range-bound trading

KARACHI: The Karachi cotton market witnessed a range-bound trading session on Monday amid firm spot rate and strong physical prices, traders at the Karachi Cotton Association (KCA) said Monday.
The KCA spot rate remained stable at Rs 11,500 per maund while physical prices stayed closer to Rs 13,100 per maund amid growing demand, floor brokers said.
The mills and spinning sectors bought lint of all grades in Sindh and Punjab stations on growing demand of yarn and cloth in domestic as well as in international markets during the trading session, floor brokers said.
They said growers withholding fine lint were asking higher prices at around Rs 13,200 per maund for their produce in Punjab stations.
They said seed cotton  arrival remained steady in Punjab stations as demand for the fine quality was expected to increase in the next coming days.
Analyst Shakeel Ahmad said stable strong physical prices depicted that leading textile and spinning units in the country were still eager for lint of all grades.
He said total arrival of bales till February 4 stood at 11.11 million bales while the cottonseed supply outlook and prices stayed firm at Rs 5,400 per maund.
Majority of the deals in Punjab took place at Rs 12,100 per maund to Rs 12,200 per maund depending on grade during the trading session.
The deals in upper Sindh changed hands above Rs 12,100 per maund while in Punjab textile and spinning sector remained the volume leaders and made around 70 percent of the total deals to 21,000 bales during the trading session. The private sector commercial exporters bought lint of all grades in the wake of its paucity and increase in demand in the near future.
The New York futures provided some breather to the traders as March Futures 2011 witnessed a correction and stood at 176.22 cents per pound and May at 171.00 cents per pound while Cotlook A Index remained on the higher side at 200 cents per pound.

(Source: http://www.dailytimes.com.pk/default.asp?page=2011\02\08\story_8-2-2011_pg5_11)