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Cotton prices touch new peak in physical trading

RECORDER REPORT

KARACHI: Cotton prices achieved another peak in physical trading at Rs 1950, higher by Rs 100 from Monday's Rs 1850, leading brokers said. The volume of business also rose further to 16,000 bales while craze of textile millers was not seen dampening, they added.

The official rates of all quoted varieties were raised substantially. Niab was up by Rs 28.75 to Rs 1811.00, K-68 up by Rs 57.50 to Rs 2092.75 and MNH-93 up by same amount to Rs 2120, with sales tax.

In ready, where huge sales were reported, prices maintained firmer trend, prices rose by Rs 100 to Rs 1950. The prices ruled between Rs 1650 and Rs 1950, without ST.

Cotton futures in New York rose modestly. Spot March was up by 0.41 to 57.86 cents after trading between 57.90 and 56.45 cents a pound. The other May was up by 0.34 cent to 59.28 after trading between 59.40 and 57.90 cents a pound.

Beside the perception of bumper crop, a couple of other factors are aiding local lint prices. One is the rising trend in world rates. The other is the presence of private sector exporters, which makes the spinners run for available quality lint.

Exporters registered another 20959 bales with EPB during January 28 and January 31. The total has gone up to 431,361 bales, after deducting Indian cancelled contracts by 58,785 bales.

Meanwhile, TCP has also reported having sold cotton to companies in Liverpool at 42 cents a pound. It should prove a booster to the prices.

Following deals were struck: 600 bales of Panjmore done at Rs 1650/Rs 1700; 200 bales of Mirpur (seed stuff/Khipro), at Rs 1650; 300 bales of Daur at Rs 1700; 500 bales at Rs 1650; 500 bales of Noabad at Rs 1650; 500 bales of Shahdadpur at Rs 1650; 400 bales of Ghotki at Rs 1835; 200 bales of Fort Abbas at Rs 1805; 1600 bales of Faqirwali at Rs 1805; 1600 bales of Khanpur at Rs 1850/1900; 2500 bales of Sadiqabad at Rs 1900; 1500 bales of Rahimyarkhan at Rs 1850/1900; 500 bales of Yezman Mandi at Rs 1800; 500 bales of Mailsi at Rs 1825; and 200 bales of Shujabad at Rs 1950 (highest in physical trading).

KCA SPOT RATES

Niab Rs 1811.00

K-68 Rs 2092.75

MNH-93 Rs 2120.00

CAKE FUTURES

Slight set-back was marked in the futures on the forward cottonseed oilcake market on Tuesday in improved trading.

The ruling March contract commenced at unchanged at Rs 333.80 but in the subsequent trading it gained 50 paisa to claim to be the highest at Rs 334.30. Later it lost 70 paisa to turn lowest at Rs 333.60 and wound up also at the same level, to show a loss of 20 paisa.

The next May contract opened 70 paisa lower at Rs 366.20 ut in the subsequent trading it rose by ten paisa to claim to be the highest at Rs 366.30. Later it lost Rs 1.50 to turn lowest at Rs 364.80 and closing was also seen at the same level, to depict a loss of 70 paisa.

Trading was large and turnover estimated at 500 lots.

MARCH VAIDA

Last Closing Rs. 333.80

Tuesday's Opening Rs 333.80

Highest Rs 334.30

Lowest Rs 333.60

Closing Rs 333.60

MAY VAIDA

Last Closing Rs 365.20

Tuesday's Opening Rs 366.20

Highest Rs 366.30

Lowest Rs 364.80

Closing Rs 364.80