KARACHI, June 16: Active trading was witnessed on the cotton market on Monday as some of the ginners opted to clearing the backlog of their unsold odd lots after spinners raised their asking prices to grab the floating stock.

After several weeks of falling mill demand, spinners and mills were back and lifted about 10,000 bales, including some big fine lots of around Rs4,000 per maund, floor brokers said.

They said resumption of normal physical activity on the cotton market partly reflects some improvement on the world textile export front and partly to last week’s steep increase in New York cotton futures.

But the credit for restoring ready business to a normal level goes to a leading spinner who has surplus stock of lint beyond his annual demand and sold 6,000 bales between Rs3,800 and Rs4,000 per maund depending on the quality, dealers said.

There is loud whispering in the market that some of the spinners and mills facing some problems on the export front found it more profitable to sell earlier purchased lint at much lower rates to their deficient trading partners, they added.

“The rise of New York July contract above the 70-cent per level from the previous 66 cents just in couple of sessions encouraged local buying amid fears of fresh increase in the local prices,” they added.

They said some of the ginners holding stray lots anticipating further increase in prices were said to be active sellers at rates between Rs3,650 and Rs4,000 per maund depending on the quality of lint in trading.

Analysts said an unsold stock of about 20,000 bales, both fine and inferior lots, lying in the godowns of ginners may be lifted by spinners and mills well before the arrival of new crop as they are not inclined to stay away from the market in the backdrop of rising world prices.

Official spot rates were, however, firmly held at the last level of Rs3,800 per maund for the last couple of sessions.

The following were some of the deals late in the evening: 1,635 and 200 bales, Mirpur Mathelo and Nawabshah, respectively, at Rs3,850, 885 bales, Dharki at Rs3,900, 200 bales, Saleh Pat at Rs3,700, 200 bales, Rahim Yar Khan 4,000 and 400 bales, at Rs3,650.

The following are Monday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32” micronair value between 3.8 to 4.9 NCL.

Rate for Ex-Gin Price Up-country Spot rate

Expenses Ex-Karachi

37.324 kgs 3,800 50 3,850

Equivalent

40 kgs 4,072 50 4,122