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Cotton prices peak at Rs 1850 in physical trading

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KARACHI: Cotton prices peaked on Monday at Rs 1850, brokers said, adding that trade volume depicted high profile Ñ around 12,000 bales.

In the meantime official rates of two superior cotton, K-68 and MNH-93, were raised. K-68 was up by Rs 23 to Rs 2035.25 and MNH-93 rose by Rs 28.75 to Rs 2062.50, with sales tax (ST). But the short staple Niab was unchanged at Rs 1782.25.

Prices in ready also rose further by Rs 50 to Rs 1850. This was highest in some weeks. The rates ruled between Rs 1450 and Rs 1850, without sales tax.

Cotton futures from New York were not received as market was closed in New York. However, prices have been inching higher.

The local cotton prices are inching up despite production was considered bumper. However, brokers body secretary, Naseem Usman, said he was told that phutti prices had reached the level of Rs 900 per 40 kg. He said that lint prices might peak and stabilise around Rs 2,000.

A number of big-lot deals were reported which might mean that spinners are apprehending that prices are poised for going higher. "They think that they are not facing only the growers and ginners but by private sector exporters also", brokers said.

Following deals were struck: 200 bales of Shahpur Chakar done at Rs 1520, 200 bales at Rs 1450, 1500 bales of Tando Adam at Rs 1500, 200 bales of Pithoro at Rs 1600, 500 bales of Noabad at Rs 1550, 200 bales of Panjmore at Rs 1600, 1200 bales of three stations at Rs 1800, 1000 bales of Chichawatni at Rs 1775, 1000 Haroonabad at Rs 1700 to 1725, 1000 Khanpur at Rs 1850, 200 bales of Multan at Rs 1850, 500 bales of Bagho Bahar at Rs 1850, and 500 bales of Karor Pacca at Rs 1800.

KCA SPOT RATES

Niab Rs 1782.25

K-68 Rs 2035.25

MNH-93 Rs 2062.50

CAKE FUTURES

Futures were higher on the forward cottonseed oilcake market on Monday amid low trading.

The ruling March contract commenced 50 paisa higher at Rs 332.20 and in the subsequent trading it rose by Rs 1.80 to claim to be the highest at Rs 334. Later trading activity lost pace and it lost Rs 2.20 to turn lowest at Rs 331.80 but gained Rs 2 before closing at Rs 333.80 to depict a rise of Rs 2.10.

The other May contract opened unchanged at Rs 364.50 and in the subsequent trading it gained Rs 1.80 to claim to be the highest at Rs 366.30. Later the trading depressed and it lost Rs 2.60 to turn lowest at Rs 363.70, but rose by Rs 1.80 to close at Rs 365.50, to show a rise of Re 1.

Trading got depressed and turnover estimated at 400 lots.

MARCH VAIDA

Last Closing Rs 331.70

Monday's Opening Rs 332.20

Highest Rs 334.00

Lowest Rs 331.80

Closing Rs 333.80

MAY VAIDA

Last Closing Rs 364.50

Monday's Opening Rs 364.50

Highest Rs 366.30

Lowest Rs 363.70

Closing Rs 365.50