KARACHI, May 23: Trading on the cotton market on Monday resumed on a steady note in the backdrop of positive fallout of the TCP Saturday’s auction of 67,000 bales. In the ready section some of the deals were finalized in line with the TCP selling rates depending on quality premiums and staple length of lint in trade, brokers said.
According to market sources the TCP again managed to sell bulk of the bales on offers between Rs2,226 to Rs2,325 for fine varieties as spinners and mills remained active buyers at the offered prices.
The TCP has during the current season procured 1.6m bales of lint cotton at Rs2,159 per 40 kg and adding to overheads and other costs it managed to sell its stocks on profit, they said.
However, owing to continued fall in world prices the TCP was not in a position to oblige a couple of foreign bidders who also participated in the auction but their bid of 43 cents per lb for the fine variety was well below its reference price, they said.
According to latest world rates, any bid around 45 cents per lb fob Karachi may have been accepted by the TCP as it conforms to the international standards depending on quality.
Meanwhile, reports coming from the major cotton growing areas indicate that sowing of the new crop is nearing completion, while in some areas it has already been completed. The growth of the early sown crop is said to be in line with the grower perceptions owing to steady inflow of irrigation water in most of the cotton belt.
Moreover, there are no reports of pest attack from the areas where the growth of the crop is steady because of extremely warm weather, which kills insects and pest, ginners said.
Official spot rates were, therefore, remained pegged at the last close of Rs2,250 as some of the deals were done in line with them, on Karachi delivery basis. In the ready section, 500 bales changed hands at Rs2,250 and 200 bales at Rs2,275.
