June 27, 2006	Tuesday	Jumadi-ul-Awwal 30, 1427

KARACHI, June 26: Trading on the cotton market on Monday resumed on an insipid note as both spinners and mills remained busy with the TCP sale tender for 33,000 bales of lint and did not fully participate in the local activity.

However, their weaker links were active buyers but failed to lift many lots owing to higher asking prices by the ginners. Some of them managed to make modest covering purchases of low-mic lint from the central Sindh cotton belt for ready delivery.

A leading floor brokers said lint prices could rise further from the current levels in the backdrop of higher bids offered by both the local and foreign buyers against the current TCP tender despite the fact the New York futures were falling each session from their recent high of 56 cents per lb for the ruling October contract.

According to market sources 33 parties participated in the auction and bid for 0.111m bales against the offer of 33,000 bales, reflecting the demand for the local lint. The bids were on the higher side as compared to previous ones and indications were that the TCP price evaluation committee may accept all the bids from the higher bidders. However, decision on the offers was expected to be announced on Tuesday.

The highest bid by the foreign buyers was said to be at 51.81 cents per lb for fine lots and 43.07 cents for the lower grades of lint.

Local spinners and mills offered to buy fine lots at Rs2,570 per maund on the lower side of the ruling prices on the ready section and Rs2,351 per maund for lower grade lint respectively.

Floor brokers said local market is expected to heat up after the TCP announced its decision on the offers as fine lots from the southern Punjab ginneries were already being sold around Rs2,700 per maund and average variety at Rs2,600.

Official spot rates were firmly held at the previous close of Rs2,600 per maund, although in the ready section deals were finalised according to quality of lint.

Ready off-take was light totalling 1,500 bales, mostly of inferior types below Rs2,600, which some of the spinners need to produce lower counts of cotton yarn.