20000404

Buyers keep to sidelines in wait for cotton policy

RECORDER REPORT

KARACHI: The cotton market was in lurch on the week's opening session as leading buyers kept to the sidelines ahead of the announcement of cotton policy.

Official spot rates for all qualities did not show any change. Thus, Niab was quoted unchanged at Rs 2,138.75, K-68 at Rs 2,311.25 and MNH-93 at Rs 2,350 with sales tax.

Cotton futures in New York continued to be erratic, market sources said. However, NYCE was closed on Sunday.

According to officials, everything has been finalised and Gen Mushrraf's return is awaited when he would announce the cotton policy.

Meanwhile, according to market sources, the growers are expecting phutti procurement price around Rs 800, or above, per 40 kg. However, other interest put the same at around Rs 600 per 40 kg.

On the other hand, spinners are talking that free market economy would continue. They want the remaining stocks of cotton with the Trading Corporation of Pakistan (TCP) to be sold to them. Or, in a veiled threat, they have often indicated they may opt for cotton import.

Start of cotton sowing will also depend on the cotton policy as growers have turned disenchanted due to losses during the 1999-2000 cotton season.

Following deals were reported: 1,200 bales of Daur done at Rs 1,900; and same quantity from Karor Paka at Rs 2,025/2,060.

KCA SPOT RATES

Niab Rs 2138.75

K-68 Rs 2311.25

MNH-93 Rs 2350.00

Cake futures

Divergent trend was seen on the forward cottonseed oilcake market on the week's opening session amid modest activity.

The May contract commenced unchanged at Rs 375.20. Later, it picked up 30 paisa to be day's best at Rs 375.50. In the process of trading it shed 70 paisa to be day's bottom at Rs 374.80 and closing was witnessed at the same to show a fall of 40 paisa for the day.

The next July vaida opened with no change in its former level at Rs 392.00. Amid sluggish business it managed to gain Rs 1.40 to be day's highest at Rs 393.40. Later, it lost Rs 1.50 to be day's bottom at Rs 391.90 and market closed at Rs 392.70 with an improvment of 70 paisa.

Trading was low and business was estimated 700 lots.

MAY VAIDA

Last Closing Rs 375.20

Monday's Opening Rs 375.20

Highest Rs 375.50

Lowest Rs 374.80

Closing Rs 374.80

JULY VAIDA

Last Closing Rs 392.00

Monday's Opening Rs 392.00

Highest Rs 393.40

Closing Rs 392.70