KARACHI, June 12: Trading activity on the cotton market on Monday lacked normal interest as spinners and mills remained busy with the latest TCP tender for 30,000 bales, acceptance or rejection of bids will be known on Tuesday after the rate evaluation committee meets.

According to market sources most of the bids both from the local and foreign buyers were on the higher side as compared to previous auction, reflecting pressure on global supplies after the resumption of forward buying by some of the leading consumers.

The highest rate for the fine lot was offered at Rs2,507 per 40 kg, while that for lower grade lint at Rs2,381 per 40 kg, which the sources said though on the higher side but were still below those at which fine lots were being traded in the ready section.

The rates TCP accepts for disposal of 30,000 bales could set the market direction in the coming weeks as ginners will follow the benchmark price after adding quality premiums to them.

But some other said ginners appeared to be in no obliging mood and were holding onto their unsold stocks to get better prices in the coming weeks as the holdings were manageable having no pressure on their liquidity.

Some of the leading ginners from the southern Punjab ginneries, who hold the bulk of the unsold stock, indicate that the total is around 0.210m bales, which they intend to dispose of at higher prices, they added.

In physical trading, ginners were not inclined to sell their fine lots below Rs2,600 per maund, some of the lots had already been sold around Rs2,625 during the last week.

“No one could deny the fact that spinners and mills are well aware about the developing situation on the supply and demand front,” brokers said, adding “they are playing down the situation in an apparent effort to contain prices within the current range before the arrival of the new crop.”

Official spot rates were firmly held at the weekend level of Rs2,525 per maund for an average quality lint but in the ready section most of the sellers demand Rs2,600 per maund.

Owing to the TCP tender, ready off-take was light totaling 1,000 bales, from a Nawabshah ginnery at Rs2,525 per maund.