KARACHI, July 18: Steady conditions prevailed on the cotton market on Monday where trading in new crop from lower Sindh started. However, the trading volume remained slow as traders’ attention remained focused on tender opening of the Trading Corporation of Pakistan. Prices remained steady to firm as most of the mills are trying to replenish their stocks to meet immediate demand before the arrival of new crop in larger size. Consequently, the TCP sale tender received encouraging response on getting higher price from millers as well as exporters. However, the corporation is to take final decision on Tuesday, after holding a meeting of its price committee.

The TCP offered 153,000 bales for sale to local and foreign buyers. It was encouraging to note that as compared to previous offers the corporation received higher bids for its cotton.

The prices offered by local buyers ranged between Rs2432 and Rs2360 per maund for Karachi stocks (TCP’s godowns), and from DG Khan and Multan stocks prices offered at Rs2457 per maund. Similarly, exporters also offered higher price for 15,000 bales they bid for. On an average prices quoted stood at 45.06 cents per pound.

Arrival of phutti from lower Sindh is finding its way into Punjab were around seven to eight ginneries have started partial operations. One unit in lower Sindh at Khipro is also reported to have started to function.

The new crop is being quoted at an encouraging price of around Rs2525 per maund, whereas phutti in Sindh is being sold between Rs1025 and Rs1030 per 40 kg. According to market sources, around 3,500 bales had been sold so far from the new crop.

Naseem Usman, a cotton analyst, said that generally climate was favourable in the cotton growing belt of Sindh and Punjab expected some four per cent damage, claimed by its government, to the cotton crop due to recent rains and floods.

It is also being estimated that the TCP on getting higher bid price for its cotton may cover up previous losses. At present the corporation is almost enjoying a monopolistic position as there are no more stocks of the last cotton crop with mills, whereas a full-fledged arrival of new crop would need some more time.

The TCP after selling around half of its total stocks of 1.6 million bales is now poised to recover its losses, as prices of cotton have now risen where it could cover its cost and even bring in some profit to the corporation, Mr Usman said.