KARACHI, June 13: Trading on the cotton market on Monday resumed on an insipid note as spinners and mills remained conspicuous by their absence eyeing the TCP lint. Although the recent fall in world lint prices foreign buyers are not actively participating in the weekly TCP auction of lint cotton as reference price of TCP for a number of grades is higher than the prevailing world rates, brokers said.
Local spinners and mills who actively participate in TCP auctions are said to be the chief buyers and are lifting bulk of lint being offered by it in line with export parity levels, they said.
Market sources said the last week’s fall in New York cotton futures has created some price problems for the TCP as it has to go by the prevailing international prices, which means a loss on some varieties.
The TCP has procured 1.6m bales as a market support step around Rs2,159 per 40 kg and adding overheads its competitive selling price comes to Rs2,400 plus.
Some of the ginners of upper Sindh and southern Punjab are selling their fine lots around Rs2,350 to Rs2,400, although they may not have more than a couple of thousands of bales in their godowns, they said.
Meanwhile, reports of fresh rain in the entire cotton belt from Hyderabad to southern Punjab on Saturday and Sunday are said to be beneficial for newly grown plants but where the new crop sowing is still continuing they growers have to re-sow after the fields get dry, ginners said.
But in any case the current rain could well prove a prelude to another bumper crop of 14m bales plus if all goes well on pest attack front during the next two months, they said.
The crop condition in the lower Sindh cotton belt is reported to be fairly encouraging and all set to resume picking operations by tahe middle of the next month and the new crop lint is expected to reach the market by end-July or early August, they added.
It was in this background that local official spot rates remained dormant and did not show any change during the week’s opening session.
Ready off-take was light as a lot of 150 bales from a Rahimyar Khan ginner was sold at Rs2,300.
