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Cotton market rules firmer

RECORDER REPORT

KARACHI: Exporters were pretty active on the cotton market cautioning spinners to be on guard, market sources said on Thursday. Volume of business improved considerably as prices maintained firm trend, sources added.

The official spot rates of cotton were not revised on Thursday, Niab therefore staying put at Rs 1,880, K-68 at Rs 2,121.50 and MNH-93 at Rs 2,148.75 with sales tax (ST).

In physical trading prices inched higher by Rs 25. The prices ruled between Rs 1,470 and Rs 1,875 without ST. However, a deal struck for payment after two months was finalised at Rs 1,950.

In New York cotton futures plummeted across the board. Spot March lost 0.38 cents to 58.42 cents after trading between 59.35 cents and 57.90 cents a pound. The other, May was down 0.52 cent to 60.65 cents after trading between 61.50 and 60.50 cents a pound.

The exporters have accelerated their activity on the market, which sources said, may cause concern among spinners. Production estimate remained doubtful at 9.2 million to 10.5 million. If exporters continued to make inroad into the market, spinners may find dearth of quality cotton, they said.

However, situation has turned quite confusing which will be clear after a few trading session.

Following deals were struck: 500 bales of Tando Adam at Rs 1,675 (exporters), 800 bales of Mirpur Khas at Rs 1,470/1,500, 200 bales at Rs 1,670 (seedstuff), 400 bales of Ruhri Rs 1,800, 400 Rajanpur at Rs 1,800, 300 bales of Vehari at Rs 1,850, 400 bales of Fort Abbas at Rs 1,800 (exporters), 400 bales of Muridwala at Rs 1,750, 200 bales of Jhang at Rs 1,800, 200 bales of Pangor Rs 1,800, 200 bales of Dera Ghazi Khan at Rs 1,800, 600 bales of Rahimyar Khan at Rs 1,800, 500 bales of Bahawalpur at Rs 1,850, 600 bales of Rahimyar Khan at Rs 1,875, 500 bales of Sadiqabad at Rs 1,950 (Credit) and 1,200 bales of Sadiqabad at unspecified rate.

KCA SPOT RATES

Niab Rs 1880.00

K-68 Rs 2121.50

MNH-93 Rs 2148.75

CAKE FUTURES

Both the futures rose on the forward cottonseed oilcake market on Thursday. The business activity remained considerably slow.

The ruling March contract commenced 50 paisa at Rs 340 and was the highest also at the same level. Later it lost 20 paisa to turn lowest at Rs 339.80 and closing was also seen at the same level, to depict a rise of 30 paisa.

The deferred May contract opened 80 paisa lower at Rs 371.60 but rose by Re 1 during the subsequent trading to claim to be the highest at Rs 372.60. It lost the earlier gain to turn lowest at Rs 371.60 but rose by 90 paisa to close higher at Rs 372.50, to show a rise of 10 paisa.

The trading activity was depressed and turnover estimated at 400 lots.

MARCH VAIDA

Last Closing Rs 339.50

Thursday's Opening Rs 340.00

Highest Rs 340.00

Lowest Rs 339.80

Closing Rs 339.80

MAY VAIDA

Last Closing Rs 372.40

Thursday's Opening Rs 371.60

Highest Rs 372.60

Lowest Rs 371.60

Closing Rs 372.50