KARACHI, April 26: Physical activity on the cotton market on Tuesday was light as spinners and mills remained busy in updating their bid prices in line with benchmark price of TCP. However, according to information originating from the TCP few foreign bidders could match the benchmark price of 48.7 cents per lb set by the corporation. Only 7,500 bales were sold at this rate to them, while some others were in the process of revising their bids, market sources said.

Some of the local mills managed to lift about 5,000 bales of both fine and low-mic lots between Rs2,305 to Rs2,310 per 40-kg depending on the quality.

According to cotton analysts the benchmark price of 48.7 cents per lb by the TCP was a judicious effort to get a best price for the contamination-free lint as the local stuff is sold at a discount of five cents per lb owing to quality considerations as compared to New York cotton futures.

“Monday’s limit-gain in the New York cotton futures signals the TCP was a bit lucky to miss its sale target at the current benchmark price”, they said “it is sure to get better price for its stocks in the coming weeks as New York May contract has already hit the high mark of 60 cents per lb, while the July is hovering around 57 cents per lb”.

Both the TCP and the bidders now have to re-fix their price priorities in line with the international prices when the TCP decides to invite fresh tender for the unsold stock lying in its godowns, they said.

Floor brokers said the cotton situation may undergo a major change during the coming weeks and despite holding lower unsold stocks, ginners could well be the chief beneficiary.

This could well mean further shrinkage in the ready business as ginners will raise their asking prices and spinners may not oblige. But much would depend how the TCP high-ups react to the rising world prices.

New York cotton futures were quoted higher by 2.10 and 2.89 cents for both the ruling May and the forward July at 58.25 and 57.01 cents per lb respectively on reports of higher demand from the consumer countries.

But local spot rates were firmly held at the last level of Rs2,225 per maund in the absence of active ready off-take.

Ready business was slow totalling 900 bales, 400 bales, Nawabshah at Rs2,170 and 500 bales, Ahmedpur East at Rs2,200 per maund.