KARACHI, Aug 5: Physical activity on the cotton market on Monday slowed down as spinners were not inclined to bid at the rising prices for the new crop lots. Ready offtake fell to only a about 1,000 bales.

For the third session, new crop prices were quoted higher by Rs25 per maund, the total rise during the last couple of days being Rs75. Some of the deals were reported at Rs2,075 per maund, indicating that the prices are heading to stay above the Rs2,100 per maund level.

Although some of the spinners still hold an unsold stock of about 20,000 bales, including some fine lots, spinners and mills appear to be more interested in purchasing new crop from the lower Sindh ginneries at much higher rates.

Floor brokers said most of the spinners currently are after the lint being offered by the TCP through tenders and once it exhausts its stocks, they (spinners) are expected to opt for the unsold stocks with the ginners.

They said most of the spinners remained busy with the tender work against the TCP tender to be opened today (Tuesday) followed by another tender for the foreign buyers.

Indications are that the TCP tender will be keenly contested as spinners will try to bid for all the lots above the benchmark price of Rs2,000 per maund owing to persistent increase in the new crop rates, the market sources said.

They, however, ruled the possibility of any downward trend in prices in the ready section if the TCP bids are below its benchmark rates or most of the bids from the spinners are rejected.

All eyes remained focused on the TCP tender and as a result, trading in the ready section remained slow and was confined to a couple of lots.

Meanwhile, reports coming from the lower Sindh cotton belt indicate that arrivals of phutti into the ginneries are below normal as growers are holding back in part their newly picked phutti to sell it further higher rates.

Already, phutti is being sold well above the official procurements rate of Rs800 per 40 kg but the recent rise in lint prices is not fully reflected in it, dealers said.

Official spot rates remained pegged at the last close in the absence of any physical deal in the ready section in the current crop.

Some lots of new crop from the Sindh ginneries changed hand as under: 100 bales of Pithoro each at Rs2,025 and Rs2,075, and 100 bales each from Mirpurkhas at Rs2,050 and Rs2,075.