KARACHI, April 17: Physical activity on the cotton market on Monday was relatively slow as leading spinners and mills kept to the sidelines most of the time awaiting the outcome of Tuesday’s TCP tender floated for the sale of 30,000 bales.

Floor brokers said bid prices offered by the local mills and foreign buyers on the auction could have both positive and negative impact on the local market in the sessions to come.

By Wednesday spinners are expected to decide whether not to go slow on the local market to keep prices below Rs2,500-level or the cartel will break up to grab the floating stock, they added.

But some cotton analysts said the prevailing world prices based on New York cotton futures reflects the bids may be on the lower side well below the TCP benchmark prices for various grades.

Some of the leading spinners actively participated in local trading and lifted big fine lots, notably from the southern Punjab ginneries but mostly below Rs2,500, although some of the lots were sold around Rs2,475 per maund.

Market sources said the arrival figures for the fortnight ended April 15 are due but both spinners and ginners believe they may not have any impact on the prevailing prices owing to their expected smaller size.

Moreover, the quality of the unsold stocks may not be that fine according to spinner specifications, although ginners claim they have already disposed of low-mic stuff and held on to fine lots.

Meanwhile, private sector exporters say they have already shipped 0.237m bales of cotton to various destinations against forward deals but “but we are not entertaining fresh import orders owing to a short crop,” they said.

Official spot rates were firmly held at the last close of Rs2,425 per maund but in the ready sections most of the deals were done above them.

Ready off-take was modest totalling 8,000 bales as under: 1,800 bales, upper Sindh at Rs2,450, 3,000 bales, Sadiqabad at Rs2,375 to Rs2,450 and 3,000 bales, Rahimyar Khan at Rs2,425 to Rs2,475.