KARACHI, June 3: Trading on the cotton market on Friday remained insipid as spinners and mills were more interested in lint being offered by the TCP rather than obliging the ginners. “The weekly TCP lint auction has taken steam out of the market for the last six weeks as spinners and mills prefer to have it even at a bit higher because of its fine quality,” brokers said.

Saturday’s (June 4) auction of 55,000 bales is being taken as a yardstick for the local lint as the fall of New York July contract below the 50-cent per lb mark is considered a negative factor as far as bid prices are concerned, they said. But some others said supply and demand factors are expected to remain at work irrespective of weak international prices as local spinners may not like to take risks and may oblige the TCP in line with its reference prices for various grades.

However, indications are that foreign buyers may not be able to get any fresh supplies as they are expected to base their bids on the New York cotton futures, after having taken into account the quality discount of about five cents per lb between the US and the local lint.

Meanwhile, reports coming from the major cotton growing areas show that cotton sowing in most of the areas has been completed, although there were some gaps, which are expected to be bridged by the deadline of June 15, local ginners said.

Owing to steady supplies of the irrigation water in most of the areas including those where the crop was sown during the last month, the growth of the tender plants is in line with the climatic conditions.

There are no reports of pest attack so far from any of the areas including lower Sindh cotton belt where the new crop is said to be in flowering stage and may reach the ginneries by the middle of the next month.

After having fallen sharply lower, New York cotton futures recovered modestly by 0.17 and 0.75 cents per lb at 48.76 and 51.45 cents per lb for both the ruling July and the new crop October contract respectively.

Local official spot rates again remained pegged at the last levels in the absence of active ready business. Ready off-take was light and consisted of stray odd lots as ginners continued to clear backlog irrespective of the offered prices.