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Cotton market lacks lustre

RECORDER REPORT

KARACHI: Trading on cotton market lacked lustre as it became hostage to sharply rising prices, market sources said. They said neither spinners are ready to pay more nor are the ginners lowering prices.

In the meantime, there was no let up in the rise of cotton prices Ñ Niab rose by Rs 46 to Rs 1782.25, K-68 rose by Rs 57.25 to Rs 2012.25 and MNH-93 up by Rs 11.50 to Rs 2035.75 with ST.

Physical trading practically was not held. Brokers who were contacted late in the evening reported only deal which was till then being finalised. The ruling prices were not being given today. The only deal was about to be finalised around Rs 1750.

In New York cotton futures were mixed front months losing while October and beyond futures rose rather sharply. The March lost 0.40 to 57.42 after trading between 58.75 and 56.70 cents a pound. The other May lost 0.28 cent to 58.65 after trading between 59.75 and 57.85 cents a pound.

The market experts were not outspoken when asked where the market was heading to. The cotton prices have risen lately by Rs 500 per maund or around. The ginners assert that it was because phutti prices had risen to Rs 700 and above.

However, the fact remains that spinners are not in a hurry. If they go slow, they doubted if exporters could fill the gap. In ready prices are ruling around Rs 1,750 and Rs1800 without sales tax. Whether high prices fall within export parity will determine how prices could be kept at ruling prices.

However, only deal stated to be 400 bales of Khanpur at Rs 1,750.

KCA SPOT RATES

Niab Rs 1782.25

K-68 Rs 2012.25

MNH-93 Rs 2033.75

CAKE FUTURES

Both the futures rose sharply on the forward cottonseed oilcake market where trading activity slackened on Thursday.

The ruling March contract commenced 20 paisa higher at Rs 329.50 but in the subsequent trading it rose by Rs 1.60 to claim to be the highest for the day to Rs 331.10. Later it dropped most of the gain i.e. Rs 1.40 to turn lowest at Rs 329.70 but rose by Rs 1.30 before closing at Rs 331, to show a sharp rise of Rs 1.70.

The deferred May contract commenced Rs 2.10 higher to Rs 362.60 and rose by 20 paisa to claim to be the highest at Rs 362.80. But in depressed trading that followed it lost 50 paisa turn lowest at Rs 362.30 and closing was also seen at the same amount to show a gain of Rs 2.10.

Trading activity was low and turnover estimated at 400 lots.

MARCH VAIDA

Last Closing Rs 329.30

Thursday's Opening Rs 329.50

Highest Rs 331.10

Lowest Rs 329.70

Closing Rs 331.00

MAY VAIDA

Last Closing Rs 360.50

Thursday's Opening Rs 362.60

Highest Rs 362.80

Lowest Rs 362.30

Closing Rs 362.30