July 16, 2002	Tuesday	Jamadi-ul-Awwal 5, 1423

KARACHI, July 15: Trading on the cotton market on Monday resumed on a relatively dull note as spinners curtailed their buying from the ginners in the backdrop of another tender floated by the TCP.

The current tender for about 50,000 bales, which also includes 20,000 bales for local sales, due to be opened by the end of the current month, seems to have worked against the underlying sentiment keeping away spinners.

Floor brokers said although spinners failed to come up to TCP benchmark prices in the last two tenders and only few proved successful bidders in the both, most of them have decided to try their luck for the third one.

The spinners may not be in a position to match the TCP price tag owing to their export parity problems, each tender sucks away the heat out of the open market, they added.

However, some of the spinners were inclined to have an appetite for the new crop lots offered on forward basis by the lower Sindh ginners for blending purposes.

Two lots of 400 bales of new crop changed hands between Rs1,825 and Rs1,850 but ginners were not inclined to go allout to make large forward commitments anticipating further increase in prices by the middle of the next month.

Dealers said the prevailing stand-off between the ginners and the spinners on the price issue continues despite the fact that local sales by the TCP have curtailed their bargaining power as the latter have an alternate source of supply though prices may not suit them keeping in view the latest developments on the export front.

Meanwhile, export sales up to July 13, 2002 rose to 0. 245m bales after private sector exporters registered export contracts for another 1,340 bales, which also included 7,685 bales of current crop.

The notable feature was that the private sector exporters are strictly maintaining their physical shipment deadlines and have already shipped 0.185m bales including 13,620 bales by the TCP against their total export commitments up to July 7. More consignments are ready at the port to be shipped after the arrival of cotton loaders.

Official spot rates remained pegged at the last close as there was no major changes in prices at which physical business is being transacted.

Ready offtake was light at 1,000 bales, which included 400 bales of Sultanabad done at Rs1,825 and Rs1,850 per maund and 600 bales of current crop from Malsi at Rs1,900.