KARACHI, July 20: Physical activity on the cotton market remained relatively slow, but some brokers claim that second-tier mills are active buyers at the prevailing rate of Rs2,400 per maund.

Ginners too appear to be in no mood to hold on to their unsold prices and are in search of buyers, anticipating the arrival of new crop from the lower Sindh cotton belt any time during the next couple of weeks, they said.

“The new crop arrivals will be too small to influence the prevailing prices,” they said. “But chances of psychological impact on those still holding stray stocks could accelerate the pace of selling from them amid fears of fall in prices.”

Fresh decline in New York cotton futures on speculative trade selling followed by reports of higher crop ideas could be another destabilizing factor in the weeks to come, they added.

New York cotton futures on Wednesday were quoted lower by 0.64 and 0.01 cents per lb at 48.45 and 49.79 cents, respectively, and could have negative impact on the future TCP auctions as far as the foreign buyers are concerned.

Meanwhile, reports coming in from the lower Sindh cotton belt indicate that a couple of ginneries are planning to resume operations during the next couple of days as arrivals of phutti are steadily picking up.

Rate of phutti for Sindh type are stable at around Rs1,100 per 40 kg, and both the Sindh and Punjab ginners are fixing prices around this level on spot basis. The growth of plants is said to be normal, although there was no rain for the last two weeks in the major cotton growing areas of both the Sindh and Punjab cotton belts.

According to crop monitoring teams of textile mills and ginners, the crop was safe from the pest attack and the growers are taking corrective steps to meet any threat after having done routine spraying of pesticides.

Official spot rates were again quoted unchanged in the absence of feedback from the ready market where details of the ready business are not immediately available.