KARACHI, June 8: Cotton market on Wednesday lacked normal trading interest as spinners and mills kept to the sidelines awaiting fresh developments on the world cotton scene after the fall of New York cotton futures below 50 cents per lb.
The breach of 50-cent per lb barrier has sent bearish signals all over the world markets as the New York cotton futures are considered the trend setters the world over, analysts said.
New York cotton futures were quoted lower by 0.43 and 0.40 cents per lb at 46.94 and 49.60 cents for both the ruling and the forward July and October settlements respectively.
Spinners’ absence from the market appears to be on two counts. Firstly, the TCP weekly auction of lint and, secondly, spinner rethinking on the import options, they said.
Indications are that the TCP will set it reference price for June 11 auction of 40,000 bales in line with the international prices, spinners hoped, adding “if it sticks to its parity level of above Rs2,300 per 40 kg, it may not find many foreign buyers despite the fact that the lint is of best quality”.
“I don’t think foreign bidders will offer competitive rates in the backdrop of falling world markets”, says a leading spinner “their top bid could be around 41 cents per lb or slightly above.”
While leading spinners and mills were awaiting the opening of bids for the TCP’s June 11 tender, their weaker links remained busy in mopping operations buying odd lots from the ginners of central Sindh and southern Punjab.
Ready off-take, therefore, was light as stray lots of inferior types to be used to spin low counts of cotton yarn were in trade, while some of the ginners in the upper Sindh were not inclined to sell contamination-free lots below Rs2,300 per maund.
Official spot rates did not show any change and were firmly held at the last level in the absence of falling ready off-take.
