KARACHI, June 9: Trading activity on the cotton market on Friday was relatively slow partly owing to higher asking prices and partly to a short Friday sessions but the undertone remained uppishly inclined.

In physical trading, some of the deals were finalized at Rs2,600 per maund, as ginners were not inclined to sell fine lots below this rate on the perception that pressure on future supplies could push prices further higher before the arrivals of the new crop from lower Sindh ginneries.

The market sentiment was also influenced favourably in sympathy with higher firm New York cotton futures, as the forward new crop October settlement is heading for the crucial level of 60 cents per lb based apparently on reports of short crop in the major producing areas and possible entry of China into the international markets, brokers said.

But the local market is currently being guided by the supply and demand factors, with TCP auctions being a balancing price balancing factor, they said, adding: “Ginners appear to be in a commanding positions having lower unsold stocks of fine lint with them.”

Market sources said the next Monday’s TCP tender for 30,000 bales was expected to set the future market price trend for the backlog with the ginners, bulk of which was said to be of fine

quality.

Unlike the last couple of sessions, the spinners have slowed down their daily intake because of higher asking prices and in the absence of rumoured textile package after the budget. They are in no mood to go beyond their parity levels. That is perhaps why leading spinners and mills remained conspicuous by their absence, they added.

Although official unsold stocks of lint with the ginners are not available, some ginners put the figure at around 0.350m bales mostly of good quality, notably from the upper Sindh and southern Punjab ginneries.

New York cotton futures posted fresh rise of 0.70 and 0.75 cents at 52.82 and 56.40 cents per lb for both the ruling July and the forward October contracts, respectively.

Local official spot rates on the other hand remained pegged at the last close in the absence of strong feedback from the ready section as spinners kept to the sidelines most of the time.

Ready offtake was light totalling about 1,000 bales as under: 500 bales, Shahdadpur at Rs2,600; and 300 bales, Dadu also at this rate.