KARACHI, July 25: Physical activity on the cotton market on Tuesday remained at low ebb, as spinners and mills were again conspicuous by the absence ahead of the TCP tender.
The TCP tender for 36,000 bales of lint of various qualities was expected to be opened on July 27, and spinners and mills, short of their annual consumption requirements, intended to participate actively in it, dealers said.
But for the second session in a row, they did not make any fresh commitments both in current and new crops, as price ideas of the buyers and sellers failed to find a meeting ground, they added.
Floor brokers said the Thursday’s TCP tender and price at which some of the bids were accepted by its evaluation committee is expected to set the future market direction.
And if the TCP failed to get positive bids in line with its benchmark price as it did in the previous auction, the spinners would opt for the local market and lift modest lots of both current and new crops, some others said.
However, it might not be clear whether or not the current price-war between ginners and spinners would end and who would be in a commanding position, they added.
Meanwhile, reports arriving here from the interior Sindh about fresh rain in the major cotton growing areas of the central cotton belt were welcome by the growers, as it is beneficial for the crop which is in an initial stage of growing.
But is could damage the standing crop in the lower Sindh where the crop is in the picking stage and picking operations of phutti are suspended owing to prevailing moisture and wet fields.
Official spot rates did not show any change in the absence of feedback from the ready market where only a couple of lots changed hands.
New York cotton futures on the other hand were quoted modestly higher by 0.55 and 0.49 cents per lb at 54.15 and 55.95 cents for both the ruling October and the forward December settlements, respectively.
