KARACHI, June 10: Cotton market on Friday again passed through a cheerless session because of TCP’s auction for 40,000 bales on Saturday in which the mills and spinners have a big stake.

Market sources said spinners and mills have vowed to buy all the lots offered by the TCP in the latest auction on the perception that it has lowered its reference price in line with the international prices.

“Even a modest downward revision in TCP selling prices based apparently on the New York cotton futures will be more competitive for the local users and they are expected to go all-out for the current offer of 40,000 bales,” market sources said.

“If we don’t come close to TCP reference price, we will make it acceptable to its high-ups after revising it in a second attempt”, says a leading spinner, and adding “in any case we want to have it irrespective of the price tag”.

According to market sources, most of the leading groups had already enough lint to see the current season through but their weaker links still needed more supplies and they would try to make up their annual consumption shortfall.

There were rumours circulating in the cotton trade that some of the leading spinners were planning to build-up a buffer stock of a substantial quantity and were engaged in mopping operations, market source said.

The TCP on the other hand has worked out total mill demand around 0.7m bales, a half of which is already purchased by them. The actual stock and sale position will be known after Aug 14, when the TCP suspends sales as directed by the government.

Floor brokers said by that time, though on modest scale, new crop lint from the lower Sindh ginneries will reach the market and the unsold stocks held by the TCP either will be exported on country-to-country basis or a reasonable buffer stock will be in place to meet crop shortfalls during the next year.

Meanwhile, reports coming from the major cotton growing areas indicate that Wednesday’s rain is beneficial for the newly grown tender plants. However, in some areas where the sowing is not completed, will be delayed owing to wet fields.

Both the local official spot rates and the New York cotton futures stayed flat in the absence of strong demand and higher asking prices.

Ready off-take was light as till late in the evening mostly odd lots changed hands around Rs2,250 or slightly below this rate.