KARACHI, May 3: Cotton prices on Tuesday were revised downward as some of the southern Punjab ginners tried to get out of the market after having lost hopes of pick-up in mill or spinner buying. But floor brokers said ginners have lowered their asking prices for the inferior stuff. As far as stray fine lots are concerned they are holding on to them in the hope that the mill buying could re-emerge anytime.

Spinners and mills expected to opt for the TCP quality stocks, which they need to produce higher counts of cotton yarn for the export market, they said. According to textile sources, the demand for local products, including cotton yarn and cloth, is picking up each day followed by steep rise in New York cotton futures.

“We are still a bit cheaper in the export sector as compared to our foreign competitors owing to lower production costs,” says a leading spinner. “Most of the foreign textile importers are seeking supplies beyond the current fiscal, ending June 30.”

“But we are watching the lint price trend and sign fresh deals for the quarter ending Sept 30, after conducting in-depth study of the future price outlook,” some others said. Meanwhile, reports coming from the spinners indicate that their hands are full for the current quarter and leading among them have also made forward deals with some of the South Asian and Far Eastern buyers for delivery before Sept 31, as by that time new crop from Sindh will arrive in ginneries.

The final PCGA figures about the unsold stocks lying with the ginners are keenly awaited as they will set the future price trend after the spinners resume local buying. After several lean sessions, the official rate committee lowered the spot rates by Rs25 for an average quality of lint.

New York cotton futures also suffered a fractional decline of 0.20 and 0.47 cents per lb at 57.80 and 56.58 cents per lb for both the ruling May and the distant July settlements. Ready offtake was light totalling 600 bales of the Chichawatni ginnery were sold at Rs2,055 per maund.