KARACHI, July 28: Modest activity was witnessed on the cotton market on Friday as some of the spinners opted for new crop lint both from the Sindh and central Punjab ginneries.

Most of the deals in the new crop were finalised between Rs2,450 on the lower side and Rs2,500 per maund on the higher side depending on the quality of lint in trade, brokers said.

The rates at which ready business was transacted were said to be on the higher side as compared to bids offered by the spinners and mills against the TCP tender for the sale of 36,000 bales, they said.

But so far, the TCP accepted bids for 8,000 bales at the best offers of Rs2,355 and Rs2,376 per maund, while other buyers had been asked to revise upward their bids, they added.

Market sources said spinners were inclined to pay a bit more for new crop both from the Sindh and central Punjab ginneries showed their preference for the new crop as compared to current crop being offered by the TCP.

However, it is too early to say something about the future tenders of the TCP as it will largely depend on mill demand and future supplies of the lint as by that time more ginneries are expected to resume operations, they said, adding “TCP should hold on to its unsold stock as a price stabilising tool in case crop is short and in the process it could get higher prices through future auctions”.

Cotton analysts said prices could move further higher during the next couple of weeks as reports of pest attack in some of the areas have started reaching here.

Official spot rates were firmly held at the last close of Rs2,500, indicating firm trend in the ready market.

New York cotton futures on the other hand recovered from the recent lows and were marked up by 0.35 and 0.28 cents at 53.60 and 55.40 cents per lb for both the ruling October and the distant December contracts respectively.

Mills ready off-take showed a modest expansion as about 2,000 bales of new crop changed hands as under: 400 bales, Tando Adam at Rs2,500 and 200 bales at Rs2,475, 200 bales, Mirpurkhas at Rs2,450, 200 bales, Sanghar at Rs2,475, 100 bales at Rs2,465, 200 bales, Multan at Rs2,565 and 200 bales, Chichawatni at Rs2,575.