KARACHI, March 15: Cotton prices on Wednesday eased from the overnight levels on selling by some of the ginners ahead of TCP’s tender for the sale of 50,000 bales on Thursday.
Some of the ginners, fearing lower bid prices for the TCP lint owing to weak world prices, reduced their asking prices to attract mills and spinners and managed to sell about 15,000 bales, brokers said.
They predicted the future market direction would be guided by the TCP auction price both for the fine and low-mic lint, and the acceptance of bid prices of both local and foreign buyers.
As a result, some of the leading spinner groups indulged in big-lot business to grab the floating stocks, which including 7,000 bales from a southern Punjab cotton belt, they said.
Moreover, larger unsold positions held by some of the leading ginners also prompted selling ahead of arrival figures for the fortnight ended March 15. According to market sources, the figures are on higher side but may not push the total to a projected figure of 13m bales.
Meanwhile, reports coming from the lower Sindh cotton belt said that the recent rain in some of the cotton areas is beneficial for the growth of the early sown cotton as it has washed out the insects.
The crop is said to be close to flowering stage and arrivals of phutti are expected to reach Sindh ginneries by early June and modest quantities of lint will be available for the spinners in July, market source said.
Official spot rates were quoted lower by Rs25 per maund at Rs2,450 in line with average prices quoted by the brokers and dealers.
New York cotton futures on the other hand remained under pressure and shed another 0.14 cents per lb for both the ruling May and the distant July contract at 54.10 and 55.33 cents respectively.
Ready off-take was active totalling about 15,000 bales, the following being notable deals: 1,200 bales, Daulatpur at Rs2,400 and 7,000 bales, Rahimyar Khan at Rs2,425 to Rs2,450.
