Cotton market witnesses firm trading session

KARACHI: The Karachi cotton market witnessed a firm trading session amid strong prices rising physical demand for all grades of lint, traders of Karachi Cotton Association (KCA) said Saturday.
The KCA remained stable exchange rate to 12,200 rupees per Maund physical higher prices around 14,500 by Maund during the negotiating sessions during the week, while the Punjab remained the volume leader, traders said.
During the week, spinning and textile sectors purchased lint of all grades at competitive prices while trying to advance the delivery period of one month was also carried out, floor brokers said.
Production during the 2011 harvest season, which ends in April 2011, is expected to stand at around 12.12 million bales, fiber analyst Shakeel Ahmad, said.
The country showed a positive sign since recovered about 88,000 bales of cotton deficit in 15 days on 15 March 2011, two weeks to three reports of the arrival of lint cotton gins Pakistan Association are still to come before late April 2011.
Despite the deficit of 1.1 million bales of production during the crop year 2010-11, the country will continue to recover around 1.10 million bales in late April, said Ahmad.
Ahmad said the arrival of seed cotton in the Punjab was still in a healthy tone, despite the dying stage of the harvest season, around 400 000 bales, plus more than 300,000 cotton-seed reserves in ginning in the Punjab.
During the last week 85 percent of the deals changed hands between the ginners and textile sector while 15 percent of deals were shared by private exporters and the commercial sector to sector yarn producers.
During the past week, about 1.3 million bales changed hands compared to 1.26 million bales a week ago. On Saturday, around 12,000 bales changed hands at the stations of Sindh and Punjab, with 85 percent share of Punjab in around 13,500 rupees to 13,800 rupees Maund Maund, depending on grade.
According to reports, New York futures crossed 204 May cents per pound, July futures remained around 198 cents per pound. Cotlook A Index, after hitting a massive 279.50 cents per pound, remained stable at 237.65 cents per pound.