KARACHI: The Karachi cotton market witnessed a range-bound trading session on Thursday while the spot rate maintained stability, traders at the Karachi Cotton Association (KCA) said on Thursday.
Mills in particular made selective deals, as the Indian government extended the ban of maturity on export till November 1, 2010, floor brokers said.
The KCA spot rate committee kept the rates unchanged at Rs 7,250 per maund.
A cotton analyst Shakeel Ahmad said, “Due to delay in implementation of the reformed general sales tax by the government, the buyers in general preferred to strengthen their long positions before levy of the tax.”
The influx of cottonseed in the ginneries on fast note has put pressure on the ginners to bring out their stocks in the market and that made the price suitable for all.
He said the ginning activities have been increased and more and more numbers of ginning units have started operational activities in Sindh and Punjab.
Ahmad said, “International prices are on a correctional phase and lint output in Punjab and Sindh will hopefully meet the set target of 13.5 million on better weather conditions.”
The ginners with strong withholding powers offered their produce on slightly higher prices around Rs 7,355 per maund in most of the Sindh stations, he added.
He said most of the deals in Punjab stations changed hands at around Rs 6,950 per maund while in Punjab deals matured between Rs 7,100 per maund to Rs 7,150 per maund during the trading session.
He said Sindh stations fetched higher prices during trading session and some deals matured above Rs 7,200 per maund.
Around 200 bales of Shahdadpur changed hands at Rs 7,100 per maund, 200 bales of Mirpurkhas at Rs 7,000 per maund, 200 bales of southern Punjab at Rs 6,900 per maund, 200 bales of Shujaabad at Rs 7,000 per maund, 200 bales of Khanewal at Rs 6,900 per maund and 200 bales of Tando Adam were traded at Rs 6,800 per maund.
New York December 2010 future deals are hovering at 101.24 cents per pound while March 2011 at 100.15 per pound. Cotlook A Index remained at 115.40 cents per pound.