KARACHI, July 1: Trading activity on the cotton market on Saturday remained relatively slow as latest lint sale tender by the TCP seems to have taken steam out of the physical business.

Just on the heels of June 26, successful tender for 33,000 bales, which fetched higher prices both from the local and foreign buyers, the TCP management floated another tender for the sale of 43,000 bales to be opened on July 10, brokers said.

Owing to heating up of the foreign markets including New York cotton futures during the last couple of sessions, the TCP is expected to get still better prices for its latest auction, market sources said.

“The perception behind the latest tender appears to be dispose of the unsold stocks at the current rising prices and active local and foreign demand” they said adding “Clearance of the stocks before the arrival

of the new crop was said to be another pressing reasons behind the quick sales.”

The TCP officials are in the process of preparing themselves for the new crop as a price stabiliser they have to enter the market any time if prices fell below the official support price.

Last season, the TCP has procured about 1.2m bales to support falling prices early in the season and disposed of the bulk of the stock to both the local and foreign buyers since then through international tender twice a month, market sources said.

Meanwhile, reports reaching here from the major cotton growing centres indicate fresh rain, which is said to be timely for the growth of tender plants.

New York cotton futures posted fresh modest rise of 0.25 and 0.15 cents per both for the matured July and ruling October settlements at 49.75 and 51.95 cents per lb, respectively.

Local official spot rates again remained pegged at the overnight level of Rs2,600 per maund in the absence of active mill demand.Ready off-take was light totalling 1,000 bales, Rahimyar Khan at Rs2,675 per maund.