KARACHI, June 14: Physical activity on the cotton market on Saturday remained slow as ginners were not inclined to lower their asking prices, although some of the leading mills and spinners were said to be ready buyers for fine lots at around Rs4,000 per maund.

Floor brokers said private sector exporters, who hold modest lots of fine lint, seemed to have filled in the supply gap caused by the absence of ginners.

Another exporter has obliged a Karachi-based spinner after having sold to him on Karachi delivery basis another 400 bales at Rs4,000 per maund, while talks for more lots are claimed to be in an advance stage, they added.

According to official import figures, spinners and mills had so far imported 3.585 million bales from various sources, including 0.220 million bales in May and needs more supplies before the arrival of the new crop.

Ginners were, however, least worried over the new developments on the cotton front after the entry of exporters as sellers, who apparently found local sales more profitable than exports and kept to the sidelines, market sources said.

The unsold stock of lint with them are not that large (about 30,000 bales) and a leading spinner can buy it in a session but the chief factor, which did not allow them to find a meeting ground, is higher asking prices, they added.

They said the fresh price flare-up in New York cotton futures for the third session in a row fuelled by reports of damage to standing US crop by heavy rain seems to have further aggravated the situation on the world markets.

The New York cotton futures on Friday were quoted further higher by 1.99 and 2.05 cents per lb at 71.63 and 75.58 cents for both the ruling July and new crop October settlements, respectively.

But in the absence of physical business in the ready section, official spot rates were again held unchanged at Rs3,800 per maund.

Ready off-take was light totaling 656 bales, sold by the exporters to the Karachi mills as under; 400 bales, at Rs4,000 and 256 bales at Rs3,700.

The following are Saturday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32” micronair value between 3.8 to 4.9 NCL.

Rate for Ex-Gin Price Up-country Spot rate

Expenses Ex-Karachi

37.324 kgs 3,800.00 50 3,850.00

Equivalent

40 kgs 4,072.00 50 4,122.00