950821

Lint prices in ready overtake

official rates

RECORDER REPORT

KARACHI: New crop Niab's official spot rates on Monday were raised again modestly, by Rs 15, while prices of the two current varieties were not revised. Prices in ready overtook the official rates. Only a few lots changed hands manifesting the ginners' reluctance to sell liberally who harbour the perception that prices will remain bullishly inclined.

International rates were not available. However, the trend overseas, as was reflected lately, was uppish.

The local KCA committee which fixes spot rates revised Niab's rates higher by Rs 15 to 1965, but K-68 and MNH-93 maintained their overnight level that is Rs 1975 and Rs 1990 respectively.

Phutti rates were also inching up, as demand exceeded supplies, and was stated to be setting at Rs 790/800. In ready, Niab once again reached Rs 2000 mark on Monday.

As supply and demand formula remains in full play, spinners find no way out from the morasse they have been in. Cotton prices are higher and yarn spun from it does not sell in foreign markets with any margin of profit. Besides, they face one hurdle after another. They had been penalised recently by Japan for alleged dumping of yarn in that country. Now, when they were planning to export yarn in names not covered by anti-dumping duty, they were blocked as the importing nations wanted bank guarantee against yarn exports. Cornered now, the spinners are seeking government help on the procedure of filing a petition before Japanese authorities for allowing new entrants to export yarn to that country. However, government's advice is awaited.

Phutti supplies are not matching demand from the ginning factories, opening one by one. This has led to increase in its prices up to Rs 800. Besides, phutti picking also slowed down due to cloudy weather and stagnated flood water. Unless all water is drained out to the sea the moisture problem will remain.

Following deals were struck, all being above official rates of Rs 1965: 200 bales of Mirpurkhas at Rs 2000, 100 bales of Shahdadpur at Rs 1975, 100 bales of Tando Adam at Rs 1975, 200 bales of Mirpurkhas at Rs 1975 and 100 bales of Tando Allahyar at Rs 1975.

KCA SPOT RATES

Niab-78 (New) Rs 1965.00

K-68 (Current) Rs 1975.00

MNH-93 (Current) Rs 1990.00

CAKE FUTURES

Both December and January contracts on the forward cottonseed oilcake market on Monday declined substantially in somewhat slow business activity.

The ruling December delivery opened weaker by Rs 2 at Rs 214 and rose by Rs 1.50 during the day's trading to be the top at Rs 215.50. Later it lost Re one to turn lowest at Rs 214.50. The end however was seen 70 paisa higher at Rs 215.20.

January contract commenced weaker by Rs 1.10 at Rs 215.90 but rose by 60 paisa during the day's proceedings, to be the highest at Rs 216.50. Later tempo of rise failed to sustain and it turned lowest at Rs 215.50 after it underwent loss of Re one but closing was seen higher at Rs 216.20, to show a loss of 80 paisa. The adverse badla turned out to Re one.

The activity was better and turnover estimated at 700 lots.

DECEMBER VAIDA

Last Closing Rs 216.00

Monday's Opening Rs 214.00

Highest Rs 215.50

Closing Rs 214.50

Lowest Rs 215.20

JANUARY VAIDA

Last Closing Rs 217.00

Monday's Opening Rs 215.90

Highest Rs 216.50

Lowest Rs 215.50

Closing Rs 216.20