950813

Fresh declines in

cotton resisted

RECORDER REPORT

KARACHI: After Saturday's sharp fall, fresh declines were resisted on the cotton market on Sunday. However, the underlying sentiment was soft in view of the report that the cotton crop was maintaining sound health and the fact that the Cotton Export Corporation (CEC) and some commercial importers were active in the market. The ginners are jittery over the situation and willing to sell their cotton at slightly enhanced rates lately. They must be thankful that the rates fixed by the CEC are much higher than the ruling prices.

The New York cotton futures prices, which usually reflect the world cotton rates were not at hand as markets abroad remain closed on Saturdays and Sundays. However, world rates lately have been moving erratically.

In Pakistan, the official rates took a respute on Sunday deterring another fall, though the depressing causes remained in tact. The rains have not inflicted any significant losses and the weather pundits confident that heavy rains were not on the cards. However, since a good cotton crop was being forecast, the CEC was in the market with 35,000 bales and commercial importers of US cotton were also liquidating their imports. The prices remained unchanged. Niab was quoted at Rs 1875, K-68 at Rs 1975 and MNH-93 at Rs 1990. Phutti was inching up and was selling on Sunday at Rs 750/760. Binola also moved higher by Rs 10 to Rs 15 between Rs 245 and Rs 250, because of dwindling supplies.

Meanwhile, encouraged by the 10 percent discount offered by the CEC after selling its earlier stocks at Rs 2350, the spinners are insisting on a further slashing in the rates by Rs 100. Till Sunday, the CEC had not announced any change regarding further cuts in its rates. The difference in rates of local lint and that from the CIS is around Rs 250 to Rs 300. The CEC rates are higher by Rs 100 even as compared to the US lint.

The authorities in Islamabad have not given any clearcut signal about the resumption in hedge trading, despite KCA's hectic efforts. In the meantime president Karachi Cotton Brokers Association (KCBA) Hanif Maniar and Secretary Nasim Usman said the recent vaxing fluctuation in cotton prices was due to the absence of hedge trading. They reiterated their demand for early resumption of hedge trading to erase anomalies that itch all in the cotton trade.

Around 3000 bales changed hands on Sunday. These include: 500 bales of Mirpurkhas at Rs 1850, 200 at Rs 1875, 100 at Rs 1900, 300 at Rs 1925, 200 bales of Tando Adam at Rs 1875, 100 bales of Sanghar at Rs 1850, 200 bales of Sultanabad at Rs 1850, 200 bales of Tando Allahyar at Rs 1875, 300 bales of Shahdadpur at Rs 1850 and 200 bales of American cotton sold at Rs 2050, and 200 bales of Sahiwal (with Sindh phutti) sold at Rs 1960/75.

KCA SPOT RATES

Niab-78 (New) Rs 1875.00

K-68 (Current) Rs 1975.00

MNH-93 (Current) Rs 1990.00

CAKE FUTURES

Deliveries were sharply lower on Sunday, where hectic business was seen. But it was likely that a hella would be called.

The ruling December delivery opened 40 paisa lower at Rs 221.50 which rate was also the day's highest. Later a sharp loss was marked and it fell to Rs 218.40 being the day's lowest, and closing was also seen at this level.

The other January contract opened unchanged at Rs 222.20, the day's highest. Later it also lost sharply to be the day's lowest at Rs 219.20 and it closed also at this level. As a result its adverse badla turned out to be 80 paisa.

Activity was fairly large and turnover was estimated at 800 lots.

DECEMBER VAIDA

Last Closing Rs 221.90

Sunday's Opening 221.50

Highest Rs 221.50

Lowest Rs 218.40

Closing Rs 218.40

JANUARY VAIDA

Last Opening Rs 222.20

Sunday's Opening Rs 222.20

Highest Rs 222.20

Lowest Rs 219.20

Closing Rs 219.20