20000205

Cotton prices plumme on arrivals at ginneries

RECORDER REPORT

KARACHI: Cotton prices plummeted substantially on Friday, as arrivals at the ginneries up to January 31 showed 35.23 percent rise, leading brokers said. Volume of business was usually high but deals finalised were a few, they added.

Against the trend persisting until Thursday, cotton prices moved in reverse gear. They fell substantially Ñ Niab was down Rs 17.25 to Rs 1,920.20, K-68 down at Rs 28.75, to Rs 2,196.25, and MNH-93 down at Rs 28.75 to Rs 2,235 with sales tax (ST).

In ready, a feat was spectacular. Only one deal was struck, for the first time this season, 10,000 bales. However, prices in ready also appeared softer. Anyway they ruled between Rs 1,500 to Rs 1,925 without ST.

The signal from the New York is soft, spot March was down substantially by 0.95 to 56.09 cents a pound, after trading between 57.50 and 55.70 cents a pound. The next May contract lost 0.79 to 57.72 after trading between 58.95 and 57.40 cents a pound.

Meanwhile, ginners' body consolidated statement about arrival, up to January 31, 2000, were shown at 9,244,785 bales, against last year's 6,836,437 bales. The increase was, therefore, seen in around 35.23 percent. Mills bought 7,128,680 bales, TCP bought 509,950 and private sector exporters bought 177,134 bales. The unsold stock with the ginners was 1,429,021 bales.

The continued rise in arrivals has now been infusing optimism among growers and traders that production may touch 10 million bales, brokers association secretary Naseem Usman said. He said for some time prediction was kept back by relevant people, some of whom today spoke optimistically.

During February 2 and 3, 2000, an additional 8,850 bales were registered with the EPB for exports to Indonesia, Thailand, Bangladesh and Taiwan.

Following deals were struck: 1,000 bales of Sadiqabad at Rs 1,925, 200 bales of Muridwala at Rs 1,825; 2,500 bales of Moro, Kot Digi and Bria City at Rs 1,700 and 200 bales of Sultanabad at Rs 1,500.

KCA SPOT RATES

Niab Rs 1920.25

K-68 Rs 2196.25

MNH-93 Rs 2235.00

CAKE FUTURE

Mixed trend was marked on the forward cottonseed oilcake market where modest trading was noted on Friday.

The ruling March contract commenced unchanged at Rs 334.80 and in the subsequent trading it rose by 60 paisa to claim to be the highest at Rs 335.40. Later in depressed trading it lost earlier gain to turn lowest at Rs 334.80 but closing was seen 20 paisa higher at Rs 335.

The next May contract opened ten paisa down at Rs 365.70 but in the subsequent trading it rose by 50 paisa to claim to be the highest at Rs 366.20. Later in depressed trading it lost the gain to turn lowest at Rs 365.70 and closing was also seen at the same level at Rs 365.70, to depict a loss of ten paisa.

The trading activity was modest and turnover estimated around 500 lots.

MARCH VAIDA

Last Closing Rs 334.80

Friday's Opening Rs 334.80

Highest Rs 335.40

Lowest Rs 334.80

Closing Rs 335.00

MAY VAIDA

Last Closing Rs 365.80

Friday's Opening Rs 365.70

Highest Rs 366.20

Lowest Rs 365.70

Closing Rs 365.70