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Cheerless outlook on cotton market

RECORDER REPORT

KARACHI: Cotton market depicted comparatively cheerless outlook on Wednesday amid guesswork how things changed overnight, market sources said. The volume of business also went down to around 5,000 bales, they added.

The official spot rates of cotton were left unrevised on Wednesday. The Niab was unchanged at Rs 1,880, K-68 at Rs 2,167.50 and MNH-93 at Rs 2,212, with sales tax (ST).

In physical trading, where volume dipped sizeably, prices also plumated by about Rs 100/Rs 150. The deals on credit were also done at Rs 120 less than Tuesday's. However, the prices ruled between Rs 1,500 and Rs 1,800, without ST.

The futures in New York turned lower across the board. Spot March contract lost 0.88 cent to Rs 55.30 after trading between 55.90 and 55.25 cents a pound. The May contract shed 0.76 cent to 57.08 after trading between 57.60 and 57.00 cents a pound.

In the meantime market men talked about finance minister's probable reply to spinners, who wanted to buy cotton from the TCP. They quoted finance minister as saying that new cotton policy would be announced in March, 2000.

The private sector exporters registered 5120 bales more with EPB for exports to BD, Indonesia and Taiwan.

Following deals were struck: 500 bales of Sanghar at Rs 1,500; 500 bales of Tando Adam at Rs 1,550; 633 bales of Odero Lal at Rs 1,550; 500 bales of Naushehro Feroze at Rs 1,625 (seed stuff); 800 bales of Khanpur Mahar at Rs 1,800; 200 bales of Pano Aqil at Rs 1,735; 300 bales of Vehari at Rs 1,750; 355 bales of Khanpur at Rs 1,880 (on credit); and 300 bales of Mailsi at Rs 1,750.

KCA SPOT RATES

Niab Rs 1880.00

K-68 Rs 2167.50

MNH-93 Rs 2212.00

CAKE FUTURES

Futures on the forward cottonseed oilcake market on Wednesday were slightly down amid improved trading.

The ruling March contract commenced ten paisa down at Rs 334.70 but rose by ten paisa in the subsequent trading to claim to be the highest at rs 334.80. Later, in depressed trading, it lost 70 paisa to turn lowest at Rs 334.10 but wound up 20 paisa higher at Rs 334.30 before closing.

The May contract opened softer by 20 paisa at Rs 366 but in the subsequent trading it rose by 40 paisa to claim to be the highest at Rs 366.40. Later it shed 70 paisa in depressed trading to turn lowest at Rs 365.70 but wound up 40 paisa higher before closing at Rs 366.10, to show a loss of marginally ten paisa.

Trading was higher and turnover estimated at 600 lots.

MARCH VAIDA

Last Closing Rs 334.80

Wednesday's Opening Rs 334.70

Highest Rs 334.80

Lowest Rs 334.10

Closing Rs 334.30

MAY VAIDA

Last Closing Rs 366.20

Wednesday's Opening Rs 366.00

Highest Rs 366.40

Lowest Rs 365.70

Closing Rs 366.10