KARACHI, July 30: Cotton market on Saturday showed firm trend because of fresh rain in the lower Sindh cotton growing areas which has slowed down the arrivals of new crop phutti into the ginneries. As a result, there were no reports of fresh deals in the new crop as ginners held on to their unsold positions and raised their asking prices on the perception that the rain has delayed the picking operations for about a week, brokers said.

Some of the ginners have indicated to sell new crop around Rs2,400 per maund but spinners including those who are in short supply appear to be in no obliging mood, they said.

They said that the current standoff on the supply and demand factors would continue for couple of days more after the picking operations of phutti were resumed and ginners were obliged to quote competitive prices. Some of the leading textile groups are keen to participate in the Monday’s TCP auction for 82,000 bales but indications are that they may not be as aggressive as they had been during the last couple of weeks, market sources predict.

In previous TCP auctions, they have purchased some of the fine lots around Rs2,450 per 40 kg but last week’s auction failed to attract many buyers or competitive prices.

“The Aug 1 auction would be very crucial as it would set the future price pattern for the new crop”, cotton analysts said “but spinners will try to keep price low, which will set the trend for the new crop”.

The TCP may suspend its weekly auctions by Aug 15, as directed by the government and balance with it could serve as buffer stock to be used to make up the crop shortfall if any during the current cropping season, they said.

New York cotton futures rose by 0.88 and 0.72 cents per lb at 50.99 and 52.48 cents for both the ruling new crop October and the distant December settlements respectively, indicating a modest boost to TCP auction prices, notably from the foreign buyers.

But local official spot rates remained basically unchanged from the overnight levels in the absence of ready business both in current and new crop varieties.