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Firmer outlook on cotton market

RECORDER REPORT

KARACHI: Cotton market maintained firmer outlook as prices resumed uphill course amid fairly large volume of business, brokers said on Wednesday. Rising trend attracted some deals on credit, they added.

The KCA rates committee pushed up official spot rates uniformly by Rs 28.75 in view of apparent TCP sales abroad at higher price. The Niab was raised by Rs 28.75 to Rs 2110, K-68 to Rs 2253.75 and MNH-93 to Rs 2292.50, with sales tax (ST).

In physical trading, prices maintained firm stance as highest level remain at Rs 2000. Prices ruled between Rs 1700 and Rs 2000, without ST.

Cotton futures in New York were again higher. Spot March was up 0.25 to 59.65 cents a pound after trading between 59.65 and 58.75 cents a pound. May contract rose by 0.32 cent to 61.64 cents a pound after trading between 61.99 and 60.65 cents a pound.

Rising trend on the market has only slightly affected sales but it appeared that some buyers had some bargain to lift cotton on credit.

Meanwhile it was reported that foreign tender for purchase of cotton invited by the TCP may be made public on Thursday. However, cotton brokers' body secretary Naseem Usman, quoting relevant sources, said that Alaqa type was learnt to have fetched around 49 cents while Afzal type has fetched 50 cents a pound.

Following deals were struck: 200 bales of Kot Ghulam Mohammad done at Rs 1750; 400 bales of Mirpurkhas at Rs 1700; 300 bales of Kandyaro at Rs 1975; 500 bales of Sanghar at Rs 1800; 200 bales at Rs 1850 (credit); 200 bales of Khipro at Rs 1800; 600 bales of Shahdadpur at Rs 1800; 2000 bales of Rahimyar Khan at Rs 2000; 200 bales of Burewala at Rs 1950; 1000 bales of Vehari at Rs 1975/2000, and 400 bales of Jahanian at Rs 1950.

KCA SPOT RATES

Niab Rs 2110.00

K-68 Rs 2253.75

MNH-93 Rs 2292.50

CAKE FUTURES

Firm conditions obtained on the forward cottonseed oilcake market in modest trading on Wednesday.

The March contract stayed put in apparent lack of trading activity. It, therefore, opened and closed at Rs 341.

The May contract opened unchanged at Rs 376.10 and in the subsequent trading it rose by 30 paisa to claim to be the highest at Rs 376.40. Later, trading depressed and it lost 50 paisa to turn lowest at Rs 375.90 and wound up 20 paisa at Rs 376.10, to show neither loss nor gain.

Trading was modest and turnover estimated around 400 lots.

MARCH VAIDA

Last Closing Rs 341.00

Wednesday's Opening Rs 341.00

Highest Rs Ñ

Lowest Rs Ñ

Closing Rs 341.00

MAY VAIDA

Last Closing Rs 376.10

Wednesday's Opening Rs 376.10

Highest Rs 376.40

Lowest Rs 375.90

Closing Rs 376.10