KARACHI, April 15: Cotton market on Friday passed through another dull session as spinners and mills were again conspicuous by their absence apparently awaiting official word from the TCP on its lint sale programme. After the cabinet’s decision to dispose of TCP procured lint aimed at supporting the market there is no further positive development on the issue is visible, dealers said.
But, well-informed brokers claim that the TCP has already prepared benchmark price and terms and conditions for the sale of lint keeping in view the international rates and will announce it before floating the tender.
Based on the prevailing New York cotton futures rates of 52.00 and 53.00 cents plus per lb for the future contracts, the benchmark price for the local stuff could be set around 45.00 to 46.00 cents per lb, they said.
According to market sources local lint is sold at discount of five cents per lb as compared to prevailing rates of New York cotton futures because of quality factor.
They said continued absence of spinners and mills from the market for the last couple of weeks has unnerved the ginners who could not precisely decide how to dispose of the unsold stock.
The final arrival figures are due during the next couple of days, which will give a full idea of the supply position and the unsold stocks, which some analysts said should not worry ginners as the quantity may not be that big.
Some ginners said the unsold stocks may not exceed the high mark 0f 0.250m bales, both of fine and inferior quality.
Official spot rates were, therefore, lowered by Rs25 per maund at Rs2,200 for the inferior stuff but the fine types are getting higher rates.
New York cotton futures on the other hand recovered from the overnight lows on active speculative support and were quoted higher by 0.92 and 0.52 cents per lb at 52.14 and 53.34 cents for both the ruling May and the distant July settlements respectively.
Ready off-take was light as some of the spinners lifted about 1,500 bales of fine lots from the upper Sindh ginneries at Rs2,250 per maund.
