20000209

Cotton prices beat a retreat

RECORDER REPORT

KARACHI: Cotton prices were down substantially, apparently to atttract buyers in a bid to tighten the stock piling up at the ginneries, brokers said. Aptma's likely plan to contact TCP to buy cotton may have contributed towards the softening, they added.

The official spot rates of cotton were pulled down substantially. Niab was down by Rs. 40.25 to Rs. 1,880, K-68 lost Rs. 28.75 to Rs. 2,167.50 and MNH-93 yielded Rs. 23 to Rs. 2,212, with sales tax.

In ready, also softening trend was apparent, excepting certain deals struck on credit at Rs. 2,000. However, the prices in physical trading ruled between Rs. 1,600 and Rs. 1,900, without sales tax.

Cotton futures in New York were mixed. Spot March was up 0.09 cent to 56.18 cents after trading between 56.38 and 56.65 cents a pound. The other May lost 0.67 cent to 57.84 cents after trading between 57.95 and 57.40 cents a pound.

Fall in cotton prices in local markets was so sudden that brokers were unable to offer any reason offhand. But some traders thought that unconfirmed report that spinners were about to approach TCP for buying cotton may have caused it.

Meanwhile, private sector exporters registered with the EPB another 3,910 bales for despatch to Bangladesh and Indonesia. Registrations at Karachi were made on February 4 and 7 while at Lahore registration was done on February 3, 2000.

Following deals were noted: 2,000 bales of Shahdadpur done at Rs. 1,600; 500 bales of Yezman Mandi at Rs. 1,840; 500 bales of Bahawalpur to Rs. 1,850; 5,000 bales of Liaquatpur and Ahmadpur East at Rs. 1,825; 500 bales of Der Ghazi Khan at Rs. 1,900 2,000 bales of Rohri at Rs. 2,000 (on credit); 200 bales of Obaro at Rs. 1,900; 500 bales of Daherki at Rs. 1,900; and 800 bales of Khanpur Maher at Rs. 1,850.

KCA SPOT RATES

Niab Rs. 1880.00

K-68 Rs. 2167.50

MNH-93 Rs. 2212.00

CAKE FUTURES

Futures on the forward cotton seed oilcake market were lower where trading accelerated on Tuesady.

The ruling March contract commenced unchanged at Rs. 335 and rose by 40 paisa in the subsequent trading to claim to be the highest at Rs. 335.40. Later in depressed trading it lost 60 paisa to turn lowest at Rs. 334.80 and closed also at the same level, to show a loss of 60 paisa.

The other, May contract opened 50 paisa lower at Rs. 365.90 but in subsequent trading it gained 80 paisa to claim to be the highest at Rs. 366.70. Later, trading lacked lustre and it lost Rs. 1.10 to turn lowest at Rs. 365.60 but wound up 60 paisa higher before closing at Rs. 366.20, to show a loss of 20 paisa.

Trading was large and turnover estimated at 600 lots.

MARCH VAIDA

Last Closing Rs. 335.00

Tuesday's Opening Rs. 335.00

Highest Rs. 335.40

Lowest Rs. 334.80

Closing Rs. 334.80

MAY VAIDA

Last Closing Rs. 366.40

Tuesday's Opening Rs. 365.90

Highest Rs. 366.70

Lowest Rs. 365.60

Closing Rs. 366.20