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Business volume down as spinners turn choosy

RECORDER REPORT

KARACHI: Spinners, in search of quality lint, have lately become choosy leading to volume going down, brokers said.

The official spot rates of K-68 was raised by Rs 40.25 (with sales tax) to Rs 2,121.50. The other two varieties were unchanged, Niab at Rs 1,851.25 and MNH-93 at Rs 2,148.75, with sales tax.

In ready, the rates ruled between Rs 1,700 and Rs 1,850, without sales tax.

New York cotton exchange opening session saw futures remaining same as last closing. The March was quoted unchanged at 57.09 cents a pound after trading between 57.24 and 55.50 cents a pound.

Cotton exporters' presence on the market is being frequently reported. They are reported to have acquired orders for about 400,000 bales. The TCP has procured nearly one million bales. Market experts are questioning how local needs would be met if total production stayed around 10 million bales.

Both spinners and private sector exporters have been going slow, but continue lifting cotton provided it is of the quality needed by them and price is suited as well.

Following deals (around 6,000 bales) were struck, including seed stuff: 200 bales of Khipro at Rs 1,750/1,800 (seed stuff); 800 bales of Tando Adam at Rs 1,700 (seed); 200 bales of Akri (bought by exporters) at Rs 1,700; 400 bales of Chandko at Rs 1,725; 400 bales of Ghotki at Rs 1,850; 900 bales of Yezman Mandi at Rs 1,810; 1,000 bales at Rs 1,850; 649 bales of Khanpur at Rs 1,850; 600 bales of Lodhran at Rs 1,825; 200 bales of Bahawalpur at Rs 1,740; and 300 bales of DG Khan at Rs 1,750.

KCA SPOT RATES

Niab Rs 1851.25

K-68 Rs 2121.50

MNH-93 Rs 2148.75

CAKE FUTURES

The futures on the forward cottonseed oilcake market maintained upsurge on Tuesday amid low trading.

The ruling March contract commenced unchanged at Rs 338 but in the process of day's trading it rose by 80 paisa to claim to be the highest at Rs 338.80. Later, trading depressed and it lost the earlier gain to turn lowest at Rs 338. It, however, gained 50 paisa before closing at Rs 338.50, to show a rise of 50 paisa.

The other May contract opened 40 paisa weaker at Rs 368.90 but rose by Rs 1.70 to claim to be the highest at Rs 370.60. But in the subsequent trading it lost the gain to turn lowest at Rs 368.80 and rose by Rs 1.70 to close higher at Rs 370.50, to show a rise of Rs 1.20.

Trading was depressed and turnover estimated at 400 lots.

MARCH VAIDA

Last Closing Rs 338.00

Tuesday's Opening Rs 338.00

Highest Rs 338.80

Lowest Rs 338.00

Closing Rs 338.50

MAY VAIDA

Last Closing Rs 369.30

Tuesday's Opening 368.90

Highest Rs 370.60

Lowest Rs 368.80

Closing Rs 370.50