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Lacklustre conditions persist on cotton market

RECORDER REPORT

KARACHI: Lacklustre conditions persisted on the cotton market on the week's opening session on Monday in the absence of demand from mills.

Official spot rates for all types remained unchanged. Thus, the Niab was quoted at Rs 2041.00, K-68 Rs 2,225.00 and MNH-93 at Rs 2,263.75, with sales tax.

Brokers said that they did not observe any unusual improvement in Monday's trading as leading participants remained on the sidelines. Ginners also were not prepared to bring the prices down on perception that the prices would go up in the near term. However, a few needy buyers were in the ring to make fresh deals for immediate requirments.

Commenting on the cotton sowing programme, market soruces observed that condition has improved after the availability of water in lower Sindh.

They felt that growers have increased their activities to achieve sowing target as soon as possible.

Following deals reported 200 bales of from Burewala at Rs 1,900 and 600 from Rahimyar Khan at Rs 1,960.

KCA SPOT RATES

Niab Rs 2041.00

K-68 Rs 2225.00

MNH-93 RS 2263.75

CAKE FUTURES

Futures maintained upward trend on the week's opening session on Monday as supply position was tight amid rising demand on cottonseed oilcake market.

The May vaida commenced unchanged at Rs 378.70 which proved to be the day's lowest. In the process of trading it picked up Rs 1.30 to be day's highest at Rs 380.00, and the market closed at this figure, showing a gain of Rs 1.30.

The July delivery opened with 40 paisa gain at Rs 404.40, which proved to be the day's bottom as later on it picked Rs 3.00 to be the day's highest at Rs 407.40. Closing was seen at Rs 406.40 to show a net gain of Rs 2.40 for the day.

Significant improvement was seen in trading and turnover was estimated at 700 lots.

MAY VAIDA

Last Closing Rs 378.70

Monday's Opening Rs 378.70

Highest Rs 380.00

Lowest Rs 378.70

Closing Rs 380.00

JULY VAIDA

Last Closing Rs 404.00

Monday's Opening Rs 404.40

Highest Rs 407.40

Lowest Rs 404.40

Closing Rs 406.40