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Business volume up on cotton market

RECORDER REPORT

KARACHI: Business volume and prices both increased on the cotton market on Saturday, brokers said. Prices were rising as phutti arrivals were reported slowing down, they added.

Official spot rate of cotton the fine type Punjab cotton (MNH-93) was raised by Rs 50.25 to Rs 2,120 with sales tax. The Niab and K-68 remained unchanged, the former at Rs 1,822.50 and K-68 at Rs 2,052.50, with sales tax.

In physical trading, where 12,000 bales of cotton changed hands, prices depicted firm trend. They ruled between Rs 1,425 and Rs 1,890, depending on the quality, without sales tax.

Cotton futures in New York maintained bullish outlook. The spot March rose sharply by 1.69 cents to 57.09 after trading between 57.24 and 55.50 cents a pound. The May rose also sharply by 2.12 cents to 59.75 after trading between 59.80 and 57.93 cents a pound.

Exporters have turned aggressive buyers lately, brokers reported. They said exporters were on the market and ready to pay even higher price if lint on offers was of export quality.

But spinners, brokers said, have lately lost some enthusiasm, as they desire the prices to come down to suit their parity.

Meanwhile, cotton arrivals up to February 15, 2000, were 9,492,816 bales, against last year's 7,009,500. TCP bought 516,450; exporters bought 192,960; and textiles bought 7,526,261. Unsold/unginned remaining were 1,257,125 bales.

Following deals were struck today: 400 bales of Mirpurkhas at Rs 1,425; 200 bales of Sanghar at Rs 1,550, 2,000 bales of Sanghar (seed) at Rs 1,700; 500 bales of Noabad at Rs 1,650 (seed), 2,000 bales of Jhole at Rs 1,700 (seed); 500 bales of Chundko at Rs 1,765; 1,000 bales of Mirpur Mathelo, Ghotki, Daherki at Rs 1,890 (two months credit); 1,000 bales of same stations at Rs 1,820 (one month credit); 800 bales of Rahimyar Khan at Rs 1,850; 800 bales of Khanpur at Rs 1,850 and 200 bales of Muridke at Rs 1,750.

KCA SPOT RATES

Niab Rs 1822.50

K-68 Rs 2052.50

MNH-93 Rs 2120.00

CAKE FUTURES

Both futures rose sharply on the forward cottonseed oilcake market on Saturday amid contracted business activity.

The ruling March contract opened 30 paisa better at Rs 335.10 and in the subsequent trading it rose by Rs 1.10 to claim to be the highest at Rs 336.20. Later, trading depressed and it lost all the gain to turn lowest at Rs 335.10, and closing was seen 90 paisa up at Rs 336, to depict a gain of Rs 1.20.

The other May contract commenced 60 paisa better at Rs 366.20 and in the subsequent trading it gained Rs 1.50 to claim to be the highest at Rs 367.70. Later, trading depressed and it lost the gain to turn lowest at Rs 366.20 but wound up Rs 1.20 higher at Rs 367.40, to depict a rise of Rs 1.80.

Trading was restricted and turnover estimated at 400 lots.

MARCH VAIDA

Last Closing Rs 334.80

Saturday's Opening Rs 335.10

Highest Rs 336.20

Lowest Rs 335.10

Closing Rs 336.00

MAY VAIDA

Last Closing Rs 365.60

Saturday's Opening Rs 366.20

Highest Rs 367.70

Lowest Rs 366.20

Closing Rs 367.40