April 23, 2006	Sunday	Rabi-ul-Awwal 24, 1427

KARACHI, April 22: Trading activity on the cotton market on Saturday was slack as spinners and mills kept to the sidelines apparently eyeing the next TCP tender of the sale of lint.

Although the TCP did not announce fresh date of the next tender and the quantity to be offered to both the local and foreign buyers, market sources said it would be on the lower side as it is planning to keep a viable buffer stock before the arrival of the new crop.

Unlike the below target production for the current season, the prospects of the next crop are uncertain despite the target of 13m bales and an increase in support price to Rs1,025 per 40 kg to encourage growers to bring more acreage under crop, they said.

Floor brokers said the persistent fall in New York cotton futures is progressively making imports of lint more competitive and some of the spinners are actively evaluating the situation.

According to them spinners may need imported stuff too to meet their demand before the new crop is available in a bigger way and at competitive rates.

The recent decline in New York cotton futures and a short local crop seems to has reopened another source of supplies from the world markets in the coming weeks, they added.

New York cotton futures fell further by 0.21 and 0.29 cents at 50.67 and 52.52 cents per lb for both the ruling May and the forward July contracts, respectively.

Although the annual mill consumption figures compiled by different agencies are not a consensus total and are varied from agency to agency.

However, spinners claim owing to expansions carried out during the last couple of years have significantly enhanced their both monthly and annual intake of lint.

Official spot rates were firmly held at the last level of Rs2,425 per maund despite falling ready offtake in the absence of mill demand.

Although some brokers claimed a modest business in the ready section but officially only 2,000 bales from Rahimyar Khan changed hands at Rs2,475.