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All spot rates raised as trading picks up on cotton market

RECORDER REPORT

KARACHI: Prices and volume of business rose on the cotton market on Wednesday amid whispers that India may cease buying cotton from Pakistan, brokers said.

It was expected that buying support would come after deals were not struck on Tuesday following Eid holidays.

The expected rise in trade volume was accompanied by hopes of prices like with this background, the KCA rates committee raised the spot rates of all quoted varieties substantially. Thus, Niab rose by Rs. 46 to Rs. 1,305, K-68 was up by Rs. 40.25 to Rs. 1,621.25 and MNH-93 up by Rs. 34.50 to Rs. 1,654.25, with ST.

In physical trading, where nearly 9,000 bales of cotton changed hands, prices rose to Rs. 1,425 for Punjab type. However, prices ruled between Rs. 1,105 and Rs. 1,425 depending on quality, without ST.

Prices rose on NYCE also. The March contract rose by 0.62 to 54.18 after trading between 54.20 to 53.31 and May up 0.69 to 55.56 after trading between 55.60 to 54.75 cents a pound.

In the meantime, private sector exporters registered another 16,981 bales with the EPB for destinations India, Bangladesh and Indonesia. The registration took place between January 6 and 11, 2000.

According to an unconfirmed report from relevant quarters, there were whispers that India may discontinue buying cotton from Pakistan. Brokers said if the rumour was true, prices might receive a setback.

Following deals were struck: 600 bales of Khipro at Rs. 1,125; 3,000 bales of Tando Adam at Rs. 1,200; 300 bales of Sunjhoro at Rs. 1,105; 1,000 bales of Daherki at Rs. 1,400; 400 bales at Rs. 1,415; 600 bales of Bahawalpur at Rs. 1,375; 1,000 bales of Rahimyar Khan at Rs. 1,425; 1,500 bales of Sadiqabad at Rs. 1,400/1,425 and 1,000 bales of Haroonabad at Rs. 1,325/1,350.

KCA SPOT RATES

Niab Rs. 1305.00

K-68 Rs. 1621.25

MNH-93 Rs. 1654.25

COTTON FUTURES

Futures on the forward cottonseed oilcake market rose sharply on Wednesday amid retreat by buyers as a result.

The ruling January contract commenced unchanged at Rs. 309.20 and in the subsequent trading rose by Rs. 2.80 to claim to be the highest at Rs. 312. Later trading depressed and it lost almost the earlier gains to turn lowest at Rs. 309 but wound up Rs. 3 higher at Rs. 312, to depict a gain of Rs. 2.80.

The other March contract opened 40 paisa lower at Rs. 318 but in the subsequent trading it gained Rs. 2.80 to Rs. 320.80. Later trading depressed and it lost Rs. 3 to turn lowest at Rs. 317.80 but wound up Rs. 2.60 higher to close at Rs. 320.40 to show a gain of Rs. 2.

Trading was low and turnover estimated at 400 lots.

JANUARY VAIDA

Last Closing Rs. 309.20

Wednesday's Opening Rs. 309.20

Highest Rs. 312.00

Lowest Rs. 309.00

Closing Rs. 312.00

MARCH VAIDA

Last Closing Rs. 318.40

Wednesday's Opening Rs. 318.00

Highest Rs. 320.80

Lowest Rs. 317.80

Closing Rs. 320.40