KARACHI, Feb 14: The cotton market reopened on a firm note as the post-Eid holiday session witnessed more buyers than sellers sans physical business in the absence of leading brokers.

Most of the leading brokers, who mostly provide the business link between the buyers and the sellers were in a virtual post-Eid holiday mood. Much of the morning session was consumed in exchanging Eid greetings than the physical trading, although some of the ginners were needed immediate supplies.

The cotton trade has been at a low ebb during the pre-Eid holiday sessions owing to delivery problems as the cargo haulers were engaged in transporting sacrificial animals from the upcountry to the city cattle market.

Physical trading in part was also affected owing to the closure of upcountry markets where traders generally resume normal trading after observing three-day holiday including two post-Eid closures.

Floor brokers said although delivery problems will ease after about a week as the transporters will remain busy in transporting leftover animals back to the upcountry centres but spinners will like to enter into in fresh deals for nearby delivery dates.

“The normal physical business is expected to resume by the next week as by that time deliveries from the local godowns will be available to most of the needy mills”, they added.

However, it is unclear whether or not the ginners will further raise their asking prices from the current levels when normal trading resumes next week.

But market sources fear prices could rise further from the current levels as the resumption of purchases by the Trading Corporation of Pakistan (TCP) from selected ginneries could encourage ginners raise their asking prices.

“The presence of the TCP in the market though on selective scale has given the psychological boost to the ginners to raise their selling prices”, they said.

Ginners are also eyeing a buoyant market on the perception that steep rise in New York cotton futures could have a sympathetic positive impact on the local prices in due course.

The New York cotton futures were on Thursday quoted at 51.71 and 56.38 cents per lb for both the maturing March and the distant May settlements, off 0.63 and 0.44 cents per lb respectively.

“What worries spinners is the future price outlook as the ruling May contract above 56 cents means pressure on the global supplies and its identical impact on the local prices”, brokers said.

According to latest world crop figures, the world demand of lint cotton will outpace supplies by a big margin and there could be price flare-up after April.

Meanwhile, the private sector exporters managed to sell another 5,657 bales of lint cotton to Bangladesh during the pre-Eid holiday sessions, the total so far being 0.115m bales comprising 54,148 bales of the old crop and 61,095 bales of new crop.

Ready offtake remained at a low ebb as till late in the evening no deal was reported.