20000329

All deals in cotton

struck on credit

RECORDER REPORT

KARACHI: Buyers concentrated on big lots of cotton on perception that stocks were depleting quicker than expected, market sources said on Tuesday. There were only two deals but the quantity was respectable at nearly 6,000 bales, they added.

The official spot rates remained unchanged. Niab was unchanged at Rs 2,253.75, K-68 at Rs 2,426.25 and MNH 93 at Rs 2,465, with sales tax.

In ready, prices were somewhat higher because deals were on credit. However, prices ranged between Rs 2175 and Rs 2,200, without sales tax.

The cotton futures in New York were mixed but the near months were gainers. Thus, spot May contract gained 0.40 cent to 59.21 cents a pound after trading between 59.40 and 58.50. Distant July was up 0.49 cent to 60.85 after trading in the range of 60.90 and 60.05 cents a pound.

Under the circumstances market sources wondered whether private sector exporters would be able to meet commitment. Pakistan still needs shipment of nearly 600,000 bales. But the ginners are confident to retrieve losses sulfered by them earlier.

The exporters might have to approach their importers for adjustments in prices.

Following deals were reported: 3,100 bales of Nurpur Nauranga at Rs 2,175 and 2,087 bales of Channi Goth and Ahmadpur East at Rs 2,200 (without sales tax). Both changed hands on credit for one month.

KCA SPOT RATES

Niab Rs 2253.75

K-68 Rs 2426.25

MNH-93 Rs 2465.00

CAKE FUTURES

Fatures were weaker on the forward cottonseed oilcake market on Tuesday amid stepped up trading activity.

The ruling May contract commenced 30 paisa lower at Rs 375.60 but in the subsequent trading it rose by 20 paisa to claim to be the highest at Rs 375.80. Later it lost 50 paisa to turn lowest at Rs 375.30 but rose by 30 paisa to close higher at Rs 375.60, to depict a loss of Rs 375.60.

The July contract opened unchanged at Rs 390.60 and was also marked highest at the same level. Later in depressed trading lost Rs 2.10 to turn lowest at Rs 388.50 but wound up 50 paisa higher at Rs 389, to depict a loss of Rs 1.60.

Trading activity spurred and turnover was estimated at 600 lots.

MAY VAIDA

Last Closing Rs 375.90

Tuesday's Opening Rs 375.60

Highest Rs 375.80

Lowest Rs 375.30

Closing Rs 375.60

JULY VAIDA

Last Closing Rs 390.60

Tuesday's Opening Rs 390.60

Highest Rs 390.60

Lowest Rs 388.50

Closing Rs 389.00