KARACHI, July 3: After several lean sessions, modest activity was witnessed on the cotton market on Wednesday as spinners were back in the rings and resumed covering operations.

About 3,000 bales changed hands mostly above Rs.1,900 per maund as ginners welcomed the return of the prodigal son with open arms for obvious reasons, one broker said.

“The TCP’s firm no to sell below its benchmark price of Rs.2,000 for any quality of lint in its fold may not be the only reason behind the return to ready market, it appears to be the most immediate one,” he adds.

The TCP has floated a local tender for 50,000 bales of fine quality of lint against which 31 spinners and mills participated. It rejected all the bids as they were far below its benchmark price of Rs.2,000 per 40 kg.

However, the TCP has asked two bidders to revise upward their bid for 2,500 bales of 1-1.16 by Rs.100 to Rs.2,170 and the other who bid for 2,000 bales of 1-1/32 inch from Rs.1926 to 2,000 by tomorrow.

“The worried ginners must be happy over the rejection of the spinner bids as they will have to cover their positions from the open market,” market sources said. “The spinners prompt re-entry reflects their unsold stock of about 0.3m bales now may be disposed of easily.”

Some leading ginners believed that the newly established benchmark price of Rs.2,000 for an average quality of lint will certainly boost local prices to this level after spinners make bigger showing in the coming sessions.

Moreover, unsold quality lots, still lying with some of the ginners, are also expected to fetch higher prices above Rs.2,000 if the spinners enhance their bids as desired by the TCP highups, they added.

Official spot rates remained pegged at the last level but are expected to rise in line with the ready prices at which physical business will be done.

Ready offtake was modest as till late in the evening about 3,000 bales changed hands as under: 400 bales, Muridwala at Rs.1,900 and other 400 at 1,910.00, 200 bales, Mailsi at 1,800.00, 250 bales, Kehror Pacca at 1,825.00, 500 bales,Mehrabpur at 1,925.00 and 500 bales, Kumb at 1,950.00.