950828

Firmer outlook on

cotton market

RECORDER REPORT

KARACHI: New crop Niab official rates, in an erratic move, rose by Rs 50, though the other two current varieties were kept unchanged at the overnight level. The ready off-take was fairly modest.

The international trend could not be determined in the absence of New York cotton futures rates, which were expected late in the evening.

Locally, firmer outlook developed on Monday with the rise in official price of new crop Niab. With Rs 50 raise Niab was quoted at Rs 2075. The K-68 and MNH-93 stayed put at Rs 1925 and Rs 1940 respectively.

In ready, prices ranged between Rs 2075 and Rs 2100 - Rs 50 higher than the official rates. Around 1000 bales of cotton (Niab only) changed hands.

It was heartening to observe the growing realisation by spinners now to switch over to higher counts than 20/21 count only, which may have an easy access into Japanese markets. The spinners in the meantime have explored new markets for their products. That is why, market operators pointout, spinners are hovering around cotton market despite high prices.

The market buzzed with the news of export sales registration with Export Promotion Bureau (EPB). According to unconfirmed reports, around 10,000 bales have already been registered recently. It may be mentioned here that not all commitments made during 1994-95 had been met. However, the market operators hoped that this move by exporter will add to bullish factors, likely to push cotton prices high.

Meanwhile, ginners have expressed concern at the ever-rising phutti prices due to scarce supplies, without according to then valid reason.

Following deals were struck 100 bales of Mirpur Khas at Rs 2075, 100 bales of Tando Adam at Rs 2075, 100 bales of Odero Lal at Rs 2100, 400 bales of Shahdadpur at Rs 2000, 2000 bales of Mirpur Khas at Rs 2100, 100 bales of Allahyar at Rs 2100.

KCA SPOT RATES

Niab-78 (New) Rs 2075.00

K-68 (Current) Rs 1925.00

MNH-93 (Current) Rs 1940.00

CAKE FUTURE

Deliveries were unchanged on the forward cottonseed oilcake market on Monday, where business activity was fairly extended.

The ruling, December, delivery opened 80 paisa down at Rs 215.50, but gained in subsequent trading Rs 1.30 to be the highest at Rs 216.80. The rising tempo, however, failed to sustain and it turned bottom at Rs 215, but wound up Rs 1.30 higher at Rs 216.30, to show no gain no less.

The other, January, contract commenced 80 paisa down at Rs 216.50. In the day's trading it, however, gained Rs 1.30 to be the highest at Rs 217.80. Later the gains were washed off and it turned lowest at Rs 216 and closing was seen at Rs 217.30, to show no-loss-no-gain. As a result its adverse badla turned out to be Re one.

The volume of trading was fairly large and turnover estimated at 800 lots.

DECEMBER VAIDA

Last Closing Rs 216.30

Monday's Opening Rs 215.50

Highest Rs 216.80

Closing Rs 215.00

Lowest Rs 216.30

JANUARY VAIDA

Last Closing Rs 217.30

Monday's Opening Rs 216.50

Highest Rs 217.80

Lowest Rs 216.00

Closing Rs 217.30