KARACHI, Feb 13: Cotton market on Wednesday lacked normal trading interest as spinners were conspicuous by their absence apparently having an overview of price situation after the entry of the Trading Corporation of Pakistan as a second buyer.

Despite being in a terribly short stock positions as spinners still need about 2.5 million bales to see the current season ending Aug 31, 2002, there was no panic among them and did not resort to panic buying.

The TCP in the meanwhile, has offered to buy grade 3 lint from the ginners at the fixed rate of Rs1,855 per maund, much higher than the rates at which physical business is being transacted.

But its entry will influence the prevailing prices upward will known during the next couple of days and spinners response to its higher and internationally competitive offered rates.

The highest rate at which 400 bales, from a southern Punjab ginnery changed hands was Rs1,650 per maund, while inferior lots changed hands between Rs1,500 to Rs1,540.

The absence of spinners from the market though temporarily reflects that they are not worried over the ready supply position or the price increase.

“A million bales is an impressive figure could well prove a bullish market factor in normal conditions”, cotton brokers say “but as the crop is fairly large, spinners are not inclined to chase prices further higher”.

According to market sources most of the leading spinners and mill hold comfortable ready positions thanks to carryover stocks and supplemented by imports and the consumption target of 10 million bales appears to be well within their reach.

Exporters who have made forward sales are, however, a bit worried amid fears of price flare-up and have started to cover their positions before it is too late.

The market is now quietly stable around the pre-TCP entry rates and did not show uneven performance since then for reasons not immediately known, ginners said.

Reports coming from the world markets are said to be bullish thanks to pick up in demand of end-products including cotton yarn.

Ready offtake was light totalling about 2,000 bales as under: 200 bales, Sanghar at Rs1,500, 200 bales, Bahawalpur at 1,500, 500 bales, Sadiqabad at 1,540 purchased by an exporter and 400 bales, Khanpur at Rs1,650.