KARACHI, June 11: Cotton market closed the weekend session on a steady note as some of the mills raised their buying rates in an apparent effort to grab the floating stock of fine lint lying with the upper Sindh and southern Punjab ginners.

But ginners were not in obliging mood apparently awaiting rate details from the latest TCP auction for 40,000 bales, bids for which opened on Saturday (June 11).

Most of the ginners may not hold long positions as far as the fine lots are concerned but spinners and mills are inclined to purchase these few thousand lots rather than opting for fresh imports, floor brokers said.

But TCP sources claim there is enough lint available and spinners and mills need not to seek foreign supplies at this stage. In their demand and supply estimate, they may not need more than 0.7m bales, and “we have more than that to offer”.

It was perhaps because of this factor that spinners and mills are actively participating in each TCP auction and managed to purchase bulk of the lint offered by it around its benchmark prices.

However, according to unofficial reports the TCP has accepted most of the offers apparently because of highly volatile foreign markets and unclear price trend owing to speculative trading, dealers said.

But the details of sales and the rates offered by the local and foreign buyers were not immediately released by the TCP as some of the lowest bidders were allowed to revise their bids, they said.

Whether or not some of the foreign bidders offered competitive price in the backdrop of falling world prices would be known by on Monday when full details will be available from the TCP.

Meanwhile, after having remained under pressure for the last couple of sessions, New York cotton futures recovered from the recent lows but ended well below the resistance level of 50 cents per lb.

The ruling July contract rose by 0.67 cents and the new crop October by 0.25 cents per lb at 46.96 and 49.60 cents respectively on reports of speculative buying followed by revival of foreign demand.

But there was no change in the official spot rates, which were firmly held at Rs2,225 per maund for average quality but fine types were sold well above them.

Ready business was light totalling 1,500 bales, mostly for fine lots, which changed hands around Rs2,300.