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Cotton prices maintain rising trend

RECORDER REPORT

KARACHI: Cotton prices maintained rising trend despite spinners' keeping to sidelines, brokers said on Monday. The volume of business was thus down to nearly 6000 bales, they added.

The official spot rates of cotton all varieties were raised substantially. Niab gained Rs 28.75 to Rs 1851.25, K-68 rose by Rs 29 to Rs 2081.25 and MNH-93 was up by Rs 28.75 to Rs 2148.75, with sales tax (ST).

In physical trading prices maintained firmness and ruled between Rs 1500 and Rs 1850, without sales tax (ST).

New York Cotton Exchange was closed and hence futures rates were not available.

Buying support continued, more particularly by those spinners who cannot run their mills without lifting lint on day-to-day basis. Sound parties are not in a hurry and try to influence prices to turn downward which are poised to go further higher.

Private sector exporters registered fresh contract with the EPB for exports of 11,378 bales to Indonesia, Thailand, Sri Lanka and Cambodia.

Following deals were noted: 1,000 bales of Mirpurkhas at Rs 1500; 200 bales of Mirpurkhas at Rs 1700 (seed); 2000 bales of Sanghar at Rs 1575 and Rs 1600; 500 bales of Bandi at Rs 1630; 400 bales of Rahimyar Khan at Rs 1850; 200 bales of Burewala at Rs 1800; 400 bales of Lodhran at Rs 1820/1825; and 400 bales of Karore Pacca at Rs 1805.

KCA SPOT RATES

Niab Rs 1851.25

K-68 Rs 2081.25

MNH-93 Rs 2148.75

CAKE FUTURES

Both futures soared on the forward cottonseed oilcake market on Monday amid restricted trading activity.

The March contract commenced unchanged at Rs 336, and rose during subsequent trading by Rs 2 to claim to be the highest at Rs 338. Later, it washed off the gain in depressed trading to turn lowest at Rs 336, and closing was seen at the highest level to show a gain of Rs 2.

The other May contract opened 70 paisa better at Rs 368.10 and in subsequent trading rose sharply by Rs 1.30 to claim to be the highest at Rs 369.40. Later, it lost Rs 1.80 to turn lowest at Rs 367.40 and closing was seen stronger by Rs 1.70 at Rs 369.30, to depict a gain of Rs 1.70.

Trading was low and turnover estimated at 500 lots.

MARCH VAIDA

Last Closing Rs 336.00

Monday's Opening Rs 336.00

Highest Rs 338.00

Lowest Rs 336.00

Closing Rs 338.00

MAY VAIDA

Last Closing Rs 367.40

Monday's Opening Rs 368.10

Highest Rs 369.40

Lowest Rs 367.60

Closing Rs 369.30