KARACHI, May 9: Trading on the cotton market on Monday resumed on a cheerless note as spinners and millers were busy revising their bids price as demanded by the TCP on May 7 for 60,000 bales auction. Floor brokers said for the time being the centre of activity was shifted to the TCP as spinners are out to have fine lint being offered by the TCP even at a higher price and on cash basis.

“The buying rates offered by both the local and foreign buyers are in line with the current international price and reflect a positive response to Pakistan lint,” they said. ”Any further upward revision by the bidders to match the TCP demand could enhance its profit margin.”

Foreign buyers have offered to buy a substantial quantity at 47.07 cents per lb as compared to New York July futures contract at 53 cents per lb and local bids by the spinners at Rs2,300 per maund, not per 40 kg.

Market sources said foreign buyers offered to buy 85,000 bales plus as compared to the current tender for 60,000 bales, which indicates that the TCP has local and foreign buyers at competitive rates and may not face any problems to dispose of the huge quantity of 1.5m bales in the coming months.

Indications are that all the lots offered for sale are expected to be lifted by both the local and foreign buyers after slight price adjustments here and there.

Cotton analysts said the size of tender should be increased to 0.1m bales plus as is reflected by buying offers for the current auction for 60,000 bales in an effort to sell bulk of the stock before the arrival of new crop in some of the ginneries including lower Sindh cotton belt.

“However, there is a need of a buffer stock of 0.3m bales plus, which the TCP could easily maintain to normalise supplies to the textile sector in case of pressure or price hike,” they said.

As a result, ready business was light, although some of the spinners and mills, which did not participate in the TCP auction were willing buyers from the open market.

About 3,000 bales, reportedly changed hands both from the central Sindh and southern Punjab cotton belts around Rs2,150.00 to Rs2,200 per maund.