July 18, 2006	Tuesday	Jumadi-ul-Sani 21, 1427

KARACHI, July 17: Trading activity on the cotton market on Monday failed to pick up as spinners and mills remained conspicuous by their absence apparently eyeing the fresh TCP tender.

Some of the spinners opted for the new crop and made forward deals for delivery next month. Unlike the previous deals of 400 bales at Rs2,450 per maund for September delivery, the August delivery was finalised at a higher rates.

Floor brokers said owing to clear weather in the central Sindh and Punjab cotton belt, picking operations of phutti are being kept at higher pace and in turn arrivals of phutti are said to be fairly steady and indications are that some more ginning factories will resume their operations.

But some others said spinners are expected to play safe in an apparent effort to keep prices within the prevailing rates that apparently conform to their export parity levels, they added.According to TCP sources the TCP has floated another tended for 36,000 bales bids against which would be opened on July 20. Although its previous tender for 42,000 bales, bids against which were opened last week, was not that successful as out of the total only 12,000 bales were purchased by the local spinners.However, spinners are expected to actively participate in the current tender as they need more supplies against their forward sales and reports of falling unsold stocks with the ginners, market sources said.

Meanwhile, according to official figures, private sector exporters have registered export contracts for 0.177m bales up to June 30, 2006, physical shipments against which are being steadily made.

Official spot rates did not show any change and were firmly held at the previous level of 2,550 per maund.

On the ready counter, a new crop deal of 900 bales from a Sultanabad ginnery in Sindh was finalised at Rs2,500 per maund for delivery between Aug 10 to 20.