KARACHI, March 28: Cotton market on Tuesday slipped from the recent higher levels as some of the disappointed central Sindh ginners unloaded their unsold positions at the lower rates fearing further decline in the absence of strong mill demand. The TCP tender for another 50,000 bales, which is due to be opened on March 31, seems to have taken steam out of the market as spinners and mills are again keen to vie for quality cotton, market sources said, adding “in the major buying shift centred on TCP sales the local market remains dull”.

Some others said spinners were buyers from the local ginners but the offered prices were too low and below the parity levels of ginners in relation to those at which phutti was purchased.

But fine lots from the southern Punjab ginneries were sold well above the official spot rates as some of the spinners were after them to produce higher counts of cotton yarn.

While central Sindh types were quoted around Rs2,400 per maund, upper Sindh variety managed to get an average rate of Rs2,450 per maund well below the fine lots from the Punjab ginneries, brokers said.

Most of the leading ginners who hold large unsold stock of well over 1m bales are now getting worried as huge amount of Rs12 billion is tied to them and there appears to be no immediate revival of mill demand, they said

After the current tender, the TCP will still hold an unsold stock of 0.4m bales, which may not allow ginners to dispose of their stocks in case it opt to sell the entire holding without maintaining a buffer stock of about 0.250m or 0.3m bales, ginners fear.

Meanwhile, there is a relative quiet on the cotton export front as the export contracts registered up to March 15 stood at the previous total of 0.243m bales.

In the absence of positive feedback from the ready market, official spot rates were firmly held at the last level of Rs2,425 per maund.

New York cotton futures on the other hand rose further by 0.60 and 0.43 cents for both the ruling May and the forward July contracts at 53.l0 and 54.51 cents per lb respectively.

Ready business was modest totalling about 10,000 bales as under: 1,000 bales, upper Sindh at Rs2,450 to Rs2,455, 2,200 bales, Gambat at Rs2,400, 1,000 bales, Chistian at Rs2,400, 1,710 bales, Sadiqabad at Rs2,470, 400 bales, Rahim Yar Khan at Rs2,475 and 200 bales, Kehror Pacca at Rs2,430.