Cotton market faces bearish trading

KARACHI: The Karachi cotton market faced a bearish trading session as leading buyers remained eager for fine lint with slow influx of lint on back of poor grade, traders at Karachi Cotton Association (KCA) said Friday.
The KCA kept the spot rate unchanged at Rs 10,000 per maund, while physical prices remained around Rs 10,600 to 10,800 per maund in Punjab and Sindh stations, floor brokers said. The spinners bought raw stocks while mills remained eager for fine quality, however the buying activity remained dull due to grade problem, floor brokers said. Weak ginners in Punjab and Sindh brought out their stocks on lower than the spot rate during the trading session, market sources added.
“The lint grade is still a problem for those buyers who want to fulfil quality cloth and yarn demand on domestic as well as on export fronts,” analyst Shakeel Ahmad said. “Due to grade the quality yarn and cloth was not available for making fine quality textile products.” It is hurting the garment and textile made up sector as they are unable to meet the quality standards of local and foreign buyers, he added.
The leading buyers slowed down their buying other than for immediate requirements during the trading session. Ahmad said some buyers having sufficient fine stocks bought low grade for blending purpose in order to keep running the wheels of the machines.
The buyers in Sindh made deals in coarse lint at around Rs 8,800 per maund to Rs 8,900 per maund. He said leading buyers in Punjab and Sindh made some deals at around Rs 9,000-9,100 per maund depending on the grades.
He said trading in Punjab remained firm where 7,000 bales changed hands while leading buyers in Sindh made some forward deals on a month’s credit above Rs 9,300 per maund. The New York Cotton Market March futures remained stable as May futures hovered at 176 cents per pound and July at 160 cents per pound, he added. Cotlook A Index closed at 181 cents per pound. staff report

(Source: http://www.dailytimes.com.pk/default.asp?page=2011%5C04%5C30%5Cstory_30-4-2011_pg5_16)