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Cotton prices touch new high in ready trading

RECORDER REPORT

KARACHI: Cotton prices touched the high of Rs 2000 per maund (on credit), as buying support was enhanced with exporters' presence becoming spectacular, brokers said. No immediate set-back in prices is likely as long as the TCP continues to manage reasonable profit from exports, they added.

Official spot rates of cotton of all varieties were uniformly raised by Rs 28.75. Thus, Niab was up at Rs 1,937.50, K-68 up at Rs 2,167.50 and MNH-93 at Rs 2,206.25, with sales tax.

The rates in physical trading also were higher. One deal on credit was finalised at Rs 2,000, though cash deals were struck between Rs 1,700 and Rs 1,950, without ST.

New York cotton futures again met with setback and lost sharply. The March contract lost 1.27 cents to 56.88 after trading between 58.70 and 57 cents a pound. May lost 1.45 cents to 58.88 after trading between 60.80 and 58.80 cents a pound.

Rising trend in cotton prices has once again prompted spinners and exporters to lift cotton in big lots, most deals were in big lots. The biggest lot of the day was of 3500 bales. The volume of business rose to around 12,000 bales.

Private sector exporters have shipped so far 131,199 bales, according to the DMR. However, market sources said that TCP results had encouraged them. They recalled TCP has been able to sell abroad over 100,000 bales.

Following deals were struck: 1,000 bales of Sanghar at Rs 1,700; 1,000 bales of Moro at Rs 1,750 (exporters); 600 bales of Daur at Rs 1,825 (seedstuff); 2,000 bales of Daherki, Ghotki and Mirpur Mathelo at Rs 2,000 (two months credit); 200 bales of Ubaro at Rs 1900; 3,500 bales of Khanpur at Rs 1,900; 2,000 bales of Bahawalpur at Rs 1,895; 800 bales of Yezman Mandi at Rs 1,875; 300 bales of Rahimyar Khan at Rs 1,900 (lint-cleaner); 300 bales of Ahmadpur East at Rs 1,850; 400 bales of Mamun Kanjan at Rs 1,850; 400 bales of Mailsi at Rs 1,875; and 400 bales at Rs 1,900.

KCA SPOT RATES

Niab Rs 1937.50

K-68 Rs 2167.50

MNH-93 Rs 2206.25

CAKE FUTURES

Futures' surge continued on the forward cottonseed oilcake market on Saturday, making it difficult for buyers to lift commodity in large quantity.

The ruling March contract commenced unchanged at Rs 340 but inÊthe subsequent trading it rose by Re 1 to claim to be the highest at Rs 341. Later in depressed trading it lost Re 1 to turn lowest at Rs 340 and wound up Re 1 higher at Rs 341 to show a gain of Re 1.

The other, May contract also opened unchanged at Rs 373.20 but rose during subsequent trading by Re 1 to claim to be the highest at Rs 374.20. Later trading depressed and it lost Rs 1.10 to turn lowest at Rs 373.10 but wound up Re 1 higher at Rs 374.10 to show a rise of 90 paisa.

Trading was depressed and turnover estimated at 400 lots.

MARCH VAIDA

Last Closing Rs 340.00

Saturday's Opening Rs 340.00

Highest Rs 341.00

Lowest Rs 340.00

Closing Rs 341.00

MAY VAIDA

Last Closing Rs 373.20

Saturday's Opening Rs 373.20

Highest Rs 374.20

Lowest Rs 373.10

Closing Rs 374.10