KARACHI, July 17: Active trading was witnessed on the cotton market on Wednesday as spinners lifted all the lots offered by the ginners at the lower levels.

An idea of panic mill buying may well be had from the fact that ginners offered to sell about 15,000 bales, which were readily picked up by the spinners and the mills both at decline and rise depending on the quality of lint, the higher rate for the current crop being Rs1,950 and the lower Rs1,700 per maund. Some big-lot deals are also involved.

Incidentally, the ginner panic selling coincided with the local tender floated by the Trading Corporation of Pakistan for the sale of 20,000 bales, but initial reports indicate that the mill response was not that encouraging as they only bid for few thousand bales. The highest rates being Rs1,954, 1,955 and Rs1,956 per maund for 1,000 bales, respectively.

The bid rates are said to be below the benchmark prices of the TCP, and it is not clear how many offers have been accepted, the market sources said.

“Ginners appear to have decided to dispose of their unsold stocks prior to the arrival of the new crop in a bigger way,” brokers said, adding “what seems to have worried them is the current decline in prices in the absence of any major negative news.”

They said the near-panic ginner selling might have also been caused by some other negative developments on the cotton front, the most immediate appears to be sharp decline in new crop prices followed by pick-up in arrivals of phutti into the ginneries.

The other contributory bearish factor may be the current steep decline in New York cotton futures, which have fallen from 30-month peak level of 47 cents per lb to 45 cents.

The official spot rates were, therefore, lowered by Rs25 at Rs1,825 per maund as new crop prices further fell to Rs1,600 from the overnight level of Rs1,700.

After two sessions’ persistent decline, New York cotton future turned mixed by revival of speculative demand at the dips. The ruling October delivery was again quoted lower by 0.11 cents, while the distant December managed to settle 0.4 cents per lb higher at 44.94 cents per lb. The former was quoted at 43.38 cents per lb.

Ready offtake was large as till late in the evening about 15,000 changed hands, the following being some of the important deals:

NEW CROP SINDH: 500 bales of Oderolal at Rs1,600 delivery on Aug 15.