20000212

All spot rates slashed

amid low trading

RECORDER REPORT

KARACHI: Cotton market was softer on Friday, where volume dipped to just 1,600 bales, market sources said. Ginners have urged the government to continue with the current policy to keep prices from destabilising, they added.

Further subtantial drop was observed in the official rates of cotton. The Niab was down by Rs 57.50 to Rs 1,765, K-68 shed Rs 38.75 to Rs 2,081.25 and MNH-93 yielded Rs 34.50, with sales tax.

In physical trading also, cotton prices came down and the highest was Rs 1,800 per maund. Thus, prices ranged between Rs 1,650 and Rs 1,800, depending on the quality, without sales tax.

Cotton futures in New York maintained surge rather sharply. Spot March rose by 1.74 cents to 57.54 after trading between 57.80 and 55.65 cents a pound. The next May contract rose by 1.92 cents to 59.59 after trading between 59.80 and 57.60 cents a pound.

Since it was rumoured that spinners had approached TCP to lift its entire stock, nearly 600,000 bales, ginners have been pretty disturbed.

They have been trying to convince the government that ginners would be in the lurch if their accumulated 1.6 million bales did not find some outlet. The ginners are expecting another one million bales. They want that the government should not come under pressure which would greatly destabilise prices.

Spinners, however, feel that if TCP sells cheap cotton to their "competitors" would affect yarn exports.

Exporters registered with the EPB 3186 bales meant for Thailand and Bangladesh.

Following deals were struck: 200 bales of Vehari done at Rs 1,700; 200 bales of Haripur at Rs 1,750; 400 bales of Sadiqabad at Rs 1,750; 800 bales of Rahimyar Khan at Rs 1,800 (Exporters bought) and 200 bales of Noabad at Rs 1,650.

KCA SPOT RATES

Niab Rs 1,765.00

K-68 Rs 2,081.25

MNH-93 Rs 2,120.00

CAKE FUTURES

Both futures gained on the forward cottonseed oilcake market amid slackened trading on Friday.

The March contract commenced unchanged at Rs 334.10 and rose in subsequent trading by 80 paisa to claim to be the highest at Rs 334.90. Later trading slackened and it lost the gain to turn lowest at Rs 334.10 but wound up at the highest level before closing at Rs 334.90, to depict a gain of 80 paisa.

The other May contract opened 30 paisa better at Rs 366 and in the subsequent trading gained 70 paisa to claim to be the highest at Rs 366.70. Later in depressed trading it lost the gain to turned lowest at Rs 366 and wound up 60 paisa better before closing at Rs 366.60, to show a gain of 90 paisa.

Trading was low and turnover estimated at 400 lots.

MARCH VAIDA

Last Closing Rs 334.10

Friday's Opening 334.10

Highest Rs 334.90

Lowest Rs 334.10

Closing Rs 334.90

MAY VAIDA

Last Closing Rs 365.70

Friday's Opening Rs 366.00

Highest Rs 366.70

Lowest Rs 366.00

Closing Rs 366.60