KARACHI, July 30: Bullish conditions were witnessed on the cotton market on Tuesday as ginners held on to their positions anticipating further increase in prices owing to pressure on ready supplies.

Spinners on the other hand refrained from making fresh commitments at any rate above Rs2,000 per maund and that too for quality lint and consequent standoff in physical activity.

Although spinners and mills still need about half a million bales to meet their annual consumption needs, leading among them are not inclined to bid at the rates beyond their export parity level.

“The price war between the spinners and the ginners has started and the latter appears to have an upper hand as they are now out of the red after having sold bulk of their unsold stock”, floor brokers said.

As a result, spinners keep to the sidelines awaiting the next tender from the TCP and pick up only selected lots conforming to their export quality standards of cotton yarn, they added.

The next TCP tender for 30,000 bales including 20,000 bales meant for the spinners due to be opened on Aug 6, has provided them an alternative to choose between the two, which is more competitive price-wise.

“The next TCP tender is expected to be keenly contested as spinners are said to be willing to pay more for the quality lint including contamination-free lots, which they need for higher count of cotton yarn for export”, market sources said.

The mills preference for TCP lint is also linked to price factor as after each tender, ginners raised their asking prices to the level at which bids were accepted by the TCP high-ups.

“The choice now pertains to quality as well as price”, one spinner says “buyers will go where the fine lots are available at a fair price”.

It was perhaps in this background that the ready business is shrinking each session as spinners await TCP tender rather than paying more to ginners, brokers said.

Meanwhile, the private sector exporters have registered fresh export contracts with the Export Promotion Bureau on July 29 for 1,528 bales, raising the total of foreign sales to 0.274m bales, out of which 0.197m bales have so far been shipped to the foreign buyers.

For the third consecutive day, official spot rates were upped by Rs25, the total being Rs75 per maund at Rs1,925 but in physical trading ginners are asking much higher prices.

New York cotton futures on the other hand remained under pressure and ended lower by 0.50 and 0.68 cents per lb at 45.25 and 46.75 cents for both the ruling October and the distant December contracts respectively.

Ready offtake was reported nil as only few lots of new crop from the lower Sindh ginneries changed hands between Rs1,950 to Rs1,975 per maund.