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Cotton prices touch Rs 1600 mark amid hectic trading

RECORDER REPORT

KARACHI: Cotton prices touched Rs 1600 mark on Tuesday's trading which was reassuring with over 20,000 bales of cotton changing hands, market sources said.

However, the volume of business is not being given as some sales were finalised late on Monday evening, brokers informed.

In the meantime official rates of cotton were left unchanged. Thus Niab was unchanged at Rs 1,408.50, K-68 at Rs 1,707.50 and MNH-93 at Rs 1,763.50, with ST.

Panic buying was reported on Tuesday though brokers said that some deals had been finalised on Monday. However, prices in ready ruled between Rs 1,300 and Rs 1,600, depending on quality. Prices were sharply up as one deal was finalised at Rs 1,600 for payment after two months.

In New York, cotton futures were also unchanged when trading resumed after three days of closure on Monday due to Martin Luther King Day. According to a former chairman of KCA, Indian dealers intimated on Monday that they were withdrawing their LCs opened for import of cotton from Pakistan.

DMR reported that 26519 bales were registered with the EPB for export. This inclued 9,440 bales meant for exports to India.

Following deals were noted: 3,000 bales of Rahimyar Khan at Rs 1,525; 3,500 bales of Sadiqabad at Rs 1,500/Rs 1,525; 700 bales of Gojra at Rs 1,325; 300 bales of Khipro at Rs 1,300; 200 bales of Tando Adam at Rs 1,300; 500 bales of Jam Sahib at Rs 1,300; 500 bales of Sarhari at Rs 1,300; 500 bales of Nawabshah at Rs 1,300; 600 bales of Mirpur Khas at Rs 1,550; 1,500 bales of Daherki at Rs 1,530; 1,000 bales of Mando Dero at Rs 1,600 payment after two months; 1,000 bales of Mirpur Mathelo at Rs 1,500; 3,000 bales of Yezman Mandi at Rs 1,475 to Rs 1,490; 1,500 bales of Bahawalpur at Rs 1,490 to Rs 1,500; 1,500 bales of Khanpur at Rs 1,525; 1,000 bales of Rajanpur at Rs 1,500; and 1,000 bales of Chishtian at Rs 1,475.

KCA SPOT RATES

Niab Rs. 1408.50

K-68 Rs. 1707.50

MNH-93 Rs. 1763.50

CAKE FUTURES

Rising tempo in March contract continued while January saw suspension in trading on the forward cottonseed oilcake market on Tuesday. Trading was modest.

The distant March contract opened 20 paisa lower at Rs 325.80 but in the subsequent trading rose by Re 1 to claim to be the highest at Rs 326.80. Later gain was washed in slow business activity to turn lowest at opening level i.e. Rs 325.80. It however wound up high by 60 paisa to Rs 326.40.

The ruling January contract opened and closed at the same level i.e. Rs 318, as trading appears to have been suspended for settlement of some problem.

Trading was low and turnover estimated at 400 lots.

JANUARY VAIDA

Last Closing Rs. 318.00

Tuesday's Opening Rs. 318.00

Highest Ñ

Lowest Ñ

Closing Rs. 318.00

MARCH VAIDA

Last Closing Rs. 326.00

Tuesday's Opening Rs. 325.80

Highest Rs. 326.80

Lowest Rs. 325.80

Closing Rs. 326.40