KARACHI, July 6: Cotton market on Saturday remained in the tight grip of ginners for the third session in a row as supply and demand factors guided the physical trading.

Although the fresh TCP tender of 52,000 bales, both for local and foreign sales, has sent waves of optimism in the spinning circles, analysts believe it could hardly influence downward the prevailing prices.

The TCP on Friday floated a fresh tender as it is inclined to get out of its long unsold position at the current attractive prices but in case it may not accept any bid below its benchmark price of Rs2,000 per 40 kg, they added.

Ginners, notably those still holding a substantial quantity of fine lots are least worried over the TCP tender as they are sure to get a fair price for them, brokers said.

They said spinners remained in the market for the third session and lifted all the lots offered by the ginners below Rs1,900. Bulk of the activity was confined to inferior stuff as ginners are holding on to the fine lots hoping to get price in line with the TCP.

“We are awaiting the outcome of the next TCP tender being held on July 10 and 11, both for the local and the foreign sales respectively as the highest bid for premium and contamination-free lots could form the basis of benchmark price for us on the open market”, says a leading ginner.

Spinners too have slowed down their covering operations after the news of second TCP tender reached the market hoping to get some lots conforming to their bid prices, he adds.

But cotton analysts said the lint from onward may not be that cheaper as it has been earlier in the season as much changed since then on the world markets in the backdrop of price flare-up on the New York Cotton Exchange.

The fact that forward deals in the new crop from the lower Sindh ginneries is being made around Rs2,100 per maund for delivery next month speaks of the future price trend, they added.

Meanwhile, the private sector exporters have registered export contracts for 2,804 bales sold to Bangladesh, South Korea and Taiwan on July 3 and 5, with the Export Promotion Bureau(EPB). The total foreign sales rose to 0.234m bales including 7,685 bales of old crop.

It was perhaps in this background that official spot rates were again upped by Rs25 to Rs1,850 per maund, excluding 15 per cent sales tax.

Ready business was light as till late in the evening about 1,500 bales changed hands, the following being some of the notable deals: 630 bales, Khanpur at Rs1,875.00, and 200 bales, Vehari at 1,850.