KARACHI, April 20: Trading on the cotton market remained slow as spinners and mills made selective purchases from some of Punjab ginneries, while leading groups were still busy to meet the TCP’s tender deadline of April 23. Floor brokers said stray lots here and there could change hands but the physical trading might get normal after the TCP tender and acceptance and rejection of the bids.
“The hike in New York cotton futures for the last couple of days has been supportive to the TCP effort to get a fair price for its fine and contamination-
free lint packed according to international standards,” they said, adding that “the rising trend in the world prices could ensure a competitive price for its stocks after fresh tenders would be floated keeping in view of the supply and demand factors.”
Although initial annual world production and consumption figures predicted an oversupply, a massive pick-up demand during the WTO regime has changed the entire outlook after the lifting of 1.4m bales by China to make a possible shortfall in its consumption projections.
“The TCP must have a fair idea of world supply and demand figures and their likely impact on the prevailing prices as selling of 1.6m bales at a competitive rate is quite a tricky job,” analysts said.
New York cotton futures on Tuesday rose by another 1.40 and 1.03 cents per lb a 54.18 and 54.87 cents for both the ruling May and distant July contracts.
As the foreign demand of the US lint is picking up, Pakistan could be the chief beneficiary of the hike as it has a substantial unsold stock of lint to cater to the South Asian region and Far East, including Hong Kong and Indonesia, dealers said.
But for the time being local official spot rates did not react to the likely change in the world cotton scene and remained pegged at the previous close of Rs2,225 per maund.
Private sector exporters remained conspicuous by their absence, while local spinners purchased stray lots as under: 200 bales, Bahawalpur at Rs2,150; and 1,000 bales, Multan at Rs2,250.
