KARACHI, June 2: Physical business on the cotton market on Thursday remained at low ebb as leading ginners, holding stray odd unsold lots, raised their asking prices for fine variety. But spinners were not in an obliging mood amid hopes that the recent steep decline in New York cotton future below 50-cent per lb mark could have sympathetic impact on the local prices, market sources said.

However, ginners claim unsold stocks of lint lying in their godowns are too small to be considered a negative market factor. A few thousand bales of both fine and inferior stuff could hardly influence the prevailing price line, they said. “I am holding on to stray unsold stock of fine lots for a better price of around Rs2,400 per maund,” one ginner said adding “I have already a couple of hundred bales of around Rs2,350 and Rs2,375 per maund.”

Floor brokers said irrespective of the supply and demand factors, the unsold stock of over a million bales held by the TCP may set the future price trend on the local market, despite the fact that the fall of the New York cotton futures for the ruling July contract may prove a major irritant for the foreign bidders.

Indications are, however, that the TCP may not be in a position to oblige foreign bidders as it may be pretty difficult for it to sell its stock below 45 cent per lb against the prevailing price of the ruling July contract at 48.59 cents per lb.

The TCP is holding its next auction for 55,000 bales on June 4, and whether or not it accepts bid in line with international rates would be a crucial point for the future dealing in lint, they said.

Meanwhile, reports coming from the southern Punjab cotton belt indicate that some of the spinners were in the process of probing unsold stocks with some of the leading ginners but according to their findings, the total is too meagre to rely upon.

New York cotton futures were marked further down by 0.05 and 0.40 cents per lb at 48.59 and 50.70 cents per lb for both the ruling July and the forward October contracts respectively.

Local official spot rates on the other hand remained pegged at the last levels in the absence of strong mill demand. Ready business remained slow as ginners kept their stocks on hold rather than selling them at higher prices. As a result, only 700 bales, mostly from the southern Punjab ginneries changed hands around Rs2,250 per maund.