950809

Continued pressure

pushes up Niab

spot rates

RECORDER REPORT

KARACHI: Continued pressure on new crop Niab helped push official spot rates of this variety by Rs. 50, on Wednesday again.

The enhanced buying to make-up for the closures ahead proved fairly encouraging for the ginners. But will the ginners' optimism hold much ground soon after normal trading in cotton begins after Independence Day celebrations conclude on August 14?

However, the prices of world cotton futures continued to move in a narrow range on both sides of the counter. On August 8, the October contract ruled in New York at 73.75 cents a pound (against 74.25 cents), December at 72.01 cents cents (against 72.74 cents) and March up at 73.09 (against 73.43 cents) a pound.

The official spot rates of new crop Niab were optimistically raised by another Rs. 50 on Wednesday, taking the total raise in two consecutive days to Rs. 75. Thus, Niab touched the level of Rs. 1925. K-68 and MNH-93, unchanged again, were quoted at Rs. 2075 and Rs. 2090 respectively.

As they have bought phutti at high prices, the ginners are not liberal in offering cotton making it available only at asking prices, phutti last year had reached over Rs. 900 and the new variety which began the traverse around Rs. 860 is ruling around Rs. 710/730. Despite the ginners' claim the market operators call the push in Niab's spot rates as optimism. There are negative factors around Unless something extra-ordinary happens with the new crops, to overshadow any bid to revise cotton prices at will, the anti-dumping duties on our yarn exports, the entry and stay of the Cotton Export Corporatin (CEC) with sales offer of its imported lint and marketing of Upper Sindh's and Punjab's cotton in a few weeks' time are likely to balance any unnatural moves.

The commerce minister hopes that Pakistan will win the current war against dumping charges. But his optimism on this count is not shared by Aptma. A garment expert of Japan said Japan was unlikely to reverse its decision on dumping duty but Pakistan stands a chance at WTO. A silver lining was seen in a report that dumping duties will not be barring new mills. A team is rushing for Taiwan any days, but pessimism lingers on. The victims are now fearing similar punitive actions from Korea and Turkey. Some call the punishment as "blessing in disguise".

Export of raw cotton continues. A fresh shipment of 1300 bales were despatched to Chittagong, Dubai and Constanza. However, 62,387 bales remain to be shipped. Private-sector exporters are committed for 2,84,173 bales. Total imports right from July 1994 to August 1995 stand at 7,65,712 bales.

The following deals were reported on Wednesday: 300 bales of Tando Allahyar at Rs. 1875, 200 bales of Shahdadpur at Rs. 1875, 200 bales of Mirpurkhas at Rs. 1850, 100 bales at Rs. 1825, 100 bales at Rs. 1875 and 100 bales at Rs. 1900, 200 bales of current crop from Moro at Rs.1960 and 200 bales of Khairpur at Rs. 1960.

KCA SPOT RATES

Niab-78 (New) Rs. 1925.00

K-68 (Current) Rs. 2075.00

MNH-93 (Current) Rs. 2090.00

CAKE FUTURES

Both the futures were lower on the forward cottonseeds oilcake market on Wednesday where activity was sluggish due to lack of buying interest.

The December contract commmenced 10 paisa better at Rs. 223.60. Later, it picked up 10 paisa to be the day's best at Rs. 224.70. In the process of trading it shed Rs. 1.90 to be the day's lowest at Rs. 221.80 and the market closed at Rs. 221.10 to show a decline of Rs. 1.90 for the day.

The January vaida began at its previous close at Rs. 223, which proved to be the day's highest at the same level. In the process of trading it lost 80 paisa to be the day's lowest at Rs. 222.20 and closing was seen at the same amount. As a result its forward badla worked out to Rs. 1.10 for the day. Activity was slow and turnover was estimated at 700 lots.

DECEMBER VAIDA

Last Closing Rs. 223.00

Wednesday's Opening Rs. 223.60

Highest Rs. 223.70

Lowest Rs. 221.80

Closing Rs. 221.10

JANUARY VAIDA

Last Opening Rs. 223.00

Wednesday's Opening Rs. 223.00

Highest Rs. 223.00

Lowest Rs. 222.20

Closing Rs. 222.20