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All lint varities spot rates slashed

RECORDER REPORT

KARACHI: Downward trend persisted on the cotton market on Friday as most of the spinners kept to the sidelines ahead of likely announcement of cotton policy next week.

Lacklustre trading was witnessed as a few buyers took part in dealings, brokers said. In psysical trading, prices ruled between Rs 1,750 and Rs 1,900.

The KCA official rate for Niab was slashed by Rs 28.85 to Rs 2,196.25, K-68 was down by Rs 40.25 to Rs 2,368.70 and MNH-93 was also down by Rs 40.25 to Rs 2,407.50, with sales tax.

Cotton futures in New York were almost down for the second day in a row. Spot May contract fell 0.38 cent to 57.57 and the distant July lost 0.23 cent to 59.24. Only October 2001 to March 2002 were up, in mixed trading.

Ginners were upset because the Trading Corporation of Pakistan (TCP) had held up their full payment. But the ginners' outbust forced TCP to arrange a meeting and finally decided to clear Rs one billion. This would greatly help the ginners to meet their obligation to banks and growers.

Cotton growers were supposed to cultivate much less cotton because 1999/2000 season almost ruined them. However, the government, keeping this in view, started a campaign in certain districts of Sindh to increase the productivity of cotton.

Following deals were reported; 500 bales of cotton from Sultanabad, and 200 from Kandiaro sold at Rs 1,900; and 2,000 from Khairpur done at the same rate.

KCA SPOT RATES

Niab Rs 2,196.25

K-68 Rs 2,368.75

MNH-93 Rs 2,407.50

CAKE FUTURES

Futures turned lower on the forward cottonseed oilcake market on Friday in the asence of buying interest.

The May vaida started trading with no change in the overnight level at Rs 375.80 which proved to be the day's highest also. Later, it shed 50 paisa to be day's lowest at Rs 375.30, and closing was seen at Rs 375.40 to show a net loss of 40 paisa for the day.

The next July contract followed the same path, showing no variation in its last closing at Rs 391.40. Amid thin activity it gained slightly by 10 paisa to be day's best at Rs 391.50. Later, it dropped by 40 paisa to be day's bottom at Rs 391.10 and market closed at Rs 391.20 to depict a fall of 20 paisa for the day.

Business was sluggish and turnover was estimated at 700 lots.

MAY VAIDA

Last Closing Rs 375.80

Friday's Opening Rs 375.80

Highest Rs 375.80

Lowest Rs 375.30

Closing Rs 375.40

JULY VAIDA

Last Closing Rs 391.40

Friday's Opening Rs 391.40

Highest Rs 391.50

Lowest Rs 391.10

Closing Rs 391.20