KARACHI, June 4: The cotton market closed the weekend session on a cheerless note as spinners and mills were again conspicuous by their absence amid slow trading. Market sources said selling prices of lint by the TCP in its June 4 auction would have a profound impact on the local rates as the bids were opened in the backdrop of falling New York cotton futures, with ruling July quoted at around 48.34 cents per lb. The local lint is sold at a discount as compared to international prices owing to its medium staple length.

The opening of the bids, both from local and foreign buyers of lint, offered by the TCP for its June 4 auction, kept the local spinners out of the market as they remained busy in watching the proceeding at the TCP head office, brokers said. They said the spinners and mills are now more interested in buying lint from the TCP in its weekly auction apparently for quality reasons rather than from the open market.

Moreover, much of the unsold odd lots lying with the ginners are claimed to be of inferior quality that could be used for blending purposes and not to produce fine counts of cotton yarn, they added. “About the recent row between the TCP and Aptma over the pricing system and godown charges, the former has clarified its position on the issue claiming that there are certain pre-conditions for the foreign buyers from which the local spinners are exempt,” they said.

The TCP has still unsold stock of 1.3m bales in its godowns and its high-ups say the spinners and mills may still need more lint to meet their annual consumption needs but not all its unsold stock. “After a modest buffer stock, the TCP plans to sell the entire stock to the foreign buyers at the rates prevailing at the time of auction,” TCP sources said.

Ready offtake, therefore, remained at low ebb, although some of the local mills needing inferior lots purchased those offered by the ginners. New York cotton futures fell by 0.42 and 0.30 cents per lb at 48.34 and 51.15 cents for both the ruling July and new crop October settlements, respectively. Local official rates on the other hand were firmly held at the last levels as there was no change in the prices of average quality lots.