950819

Brisk trading observed

on cotton market

RECORDER REPORT

KARACHI: Brisk trading was observed on cotton market on the week-opening session on Saturday where bulls were firmly saddled. Official spot rates of all quoted varieties were uniformly raised by Rs 25.

World rates were marked sharply higher on Friday and the speed with which they were advancing, one-dollar mark was only a short distance away. However, they were as quoted on Friday as October at 80.75 cents a pound, December at 78.55 and March at 79.55 cents.

Local prices, backed by mostly external factors, including world raising rates, have also moved on sizeably by Rs 100 in three days. The early maturing Sindh variety Niab was again up by Rs 25 to Rs 1975, and the current crops K-68 and MNH-93 were quoted at Rs 2,000 and Rs 2015 respectively.

There was no news about, how Cotton Export Corporation (CEC) is faring with its second phase selling venture of 35,000 bales. The most the market sources were able to say was that CEC's cotton sale had not been as fast this time as it was in its first phase, though the price at that time was Rs 2350 and now it is Rs 2115 - i.e. at 10 percent discount. However, imported (American) lint is also reported as having been sold at over Rs 2000. Six thousand bales of American cotton changed hands on Saturday at Rs 2050/2100, per maund. The deal was struck from mill to mill.

The hectic buying spree in cotton speaks volumes about the attitude of the spinners who hope to see Japan's anti-dumping levy to be nullified.

It has been contrary to the traditional spinners tactics of holding in check cotton prices by buying a few lots and stop buying the next day, that they have continued lifting cotton this time. It is not yet clear whether they plan to resume working on Fridays, which they had put off because of shortage of cotton or due to high prices which rendered their products - yarn - incompetitive.

Following deals were struck on Saturday; 300 bales of Sultanabad at Rs 1925, 100 bales of Sanghar at Rs 1920, 1000 bales of Mirpurkhas at Rs 1925, 200 bales of Shahdadpur at Rs 1925, 100 bales of Tando Allahyar at Rs 1925, 100 bales at Rs 1900, 200 bales of Tando Adam at Rs 1925, 100 bales of Oderolal at Rs 1925, 300 bales of MNH-93 at Rs 1750 and 6000 bales of US lint at around Rs 2050 and 2100.

KCA SPOT RATES

Niab-78 (New) Rs 1975.00

K-68 (Current) Rs 2000.00

MNH-93 (Current) Rs 2015.00

CAKE FUTURES

Deliveries were sharply lower on the forward cottonseed oilcake market on Saturday, where bectic business trading was observed.

The ruling December contract commenced 50 paisa weaker at Rs 216.30 and was seen highest also during the day's proceedings. But tempo dampened further to lose Rs 1.30 to turn lowest at Rs 215. It, however, closed stronger by 70 paisa at Rs 215.70 to depict a decline of Rs 1.10.

The other, January vaida opened 50 paisa better at Rs 217.90 and was incidentally highest at the same amount. Later it conceded sharply by Rs 2.30 to turn lowest at Rs 215.60 and closing was seen 70 paisa better at Rs 216.30, to show the loss at Rs 1.10. As a result its adverse badla turned out to be just 60 paisa.

Activity was brisk and turnover estimated at 800 lots.

DECEMBER VAIDA

Last Closing Rs 216.80

Saturday's Opening Rs 216.30

Highest Rs 216.30

Closing Rs 215.70

Lowest Rs 215.00

JANUARY VAIDA

Last Opening Rs 217.40

Saturday's Opening Rs 217.90

Highest Rs 217.90

Lowest Rs 215.60

Closing Rs 216.30