950803

All lint varieties shed

Rs 50 to Rs 75

RECORDER REPORT

KARACHI: There was no let-up in the week-long plunge in the prices of cotton. Only on Thursday all the quoted varieties shed from Rs 50 to Rs 75. Ginners have come under intense pressure and are selling, while spinners are watching the prices divindling and keep on the side line in view of unprecedented debacle in export of yarn.

Speculative selling in New York cotton futures and prospects of good cotton yield are keeping rates soft there. The NYC futures prices on Wednesday were quoted at 73 cents a pound basis October, December and March were quoted at 71.20 and 72.25 cents a pound, respectively. World settlement rates were not at hand which, however, hover around cotton futures prices.

In so far as local cotton rates were concerned, the week almost made a history in not only receding every day, but also sharply - every time to more or less Rs 150. On Thursday, cotton prices backed away by Rs 50 to 75. Thus Niab, which lost Rs 75 in one go, was quoted at Rs 1975, K-68 and MNH-93 were quoted Rs 50 down each at Rs 2175 and Rs 2190 respectively. The prices of phutti also had a sympathetic dip from Rs 840, the other day, to Rs 700/750 per 40 kgs.

In ready also, prices plummeted to an unexpected level of Rs 1650. The last plunge on Wednesday was seen to Rs 1850 - a straight loss of Rs 200 in just 24 hours. Negative factors are not lacking, but the main villain was the punitive action by Japan and Taiwan - losses on which account will run into billions of rupees.

The jittery spinners have accused government of attending too much to political matters and requested it to find out time to tackle such problems as have arisen out of anti-dumping duty levy on the exports of yarn from Pakistani spinners. The Prime Minister had expressed willingness to take up the issue with the Japanese counterpart on the issue of anti-dumping.

In the meantime, all is supposed to be well in the cotton growing belt areas in Sindh and Punjab. Telephonic messages confirmed no immediate large-scale harm has come to cotton crop. However, news of another "deluge" in the Punjab drew attention of cotton traders.

Raw cotton shipped to different destinations totalled at 2,16,896 bales against commitment of 2,84,173 bales. Total imports of cotton since August 1, 1994 to July 17, 1995 stood at 7,62,712 bales.

Following deals were reported struck on Thursday: 100 bales of Tando Adam at Rs 1850, 300 bales of Sultanabad at Rs 1925, 300 bales at Rs 1700, 100 bales at Rs 1725 and 300 bales (towards closing time) at Rs 1650.

KCA SPORT RATES

Niab-78 (New) Rs 1975.00

K-68 (Current) Rs 2175.00

MNH-93 (Current) Rs 2190.00

CAKE FUTURES

Both futures depicted easier trend on the weekend session of the forward cottonseeds oilcake market on Thursday where activity was sluggish on lack of demand.

The December contract started 90 paisa lower at Rs 222.50 which proved to be day's lowest at the same level. Later, it gained 80 paisa to be day's best at Rs 223.80. And market closed at Rs 223.00 to show a fall of 40 paisa for the day.

The January vaida opened 90 paisa down at Rs 221.50 that proved to be day's bottom also. During the day it picked up 80 paisa to be day's highest at Rs 222.80 and closing was seen at Rs 222.00 to depict a decline of 40 paisa. As a result its forward badla worked out to Re one for the day.

Activity was thin and turnover was estimated 700 lots.

DECEMBER VAIDA

Last Closing Rs 223.40

Thursday's Opening Rs 222.50

Highest Rs 223.80

Lowest Rs 222.50

Closing Rs 223.00

JANUARY VAIDA

Last Closing Rs 222.40

Thursday's Opening Rs 221.50

Highest Rs 222.80

Lowest 221.50

Closing Rs 222.00