KARACHI, May 28: Trading on cotton market on Tuesday showed a sizeable expansion as spinners and exporters made snap covering purchases at the lower levels, although the bulk of business was confined to inferior types from the central Sindh ginneries.

About 15,000 bales changed hands, mostly between Rs1,200 on the lower side and Rs1,475 on the higher side depending on the quality premium.

“The revival of mill demand at the dips reflects that both the ginners and the spinners have decided to help each other before the arrival of the new crop,” one dealer said.

However, fine quality lint from the southern Punjab cotton belt was said to be in strong demand as a leading spinner group was out to grab it at a price well above the official as well as the rates being offered by the TCP.

Ginners, who are holding long unsold positions in the fine types, may not get the higher price of Rs2,000 per maund, but their holding could benefit them after the final arrival figures are released by the Pakistan Cotton Ginners Association (PCGA) possibly by the first week of the next month.

“Unlike the previous weeks, there is a relative calm on the ginners front as its apex body is not sending SOS to Islamabad calling for a rescue operation,” brokers said, adding “it reflects that sailing on the sale front is relatively smooth.”

However, the unsold figures will tell whether or not they are in a commanding position, outwitting the spinners who still need about a million bales to see the current season ending on Aug 31, through, they said.

They said one thing appears certain that ginners had now come out from the lean period and would get a better price for their unsold stock as both exporters and spinners would resume normal covering operations after having a fair idea of the final supplies.

Moreover, the recent increase in the New York cotton futures, which are inching up to hit the coveted mark of 40 cents per lb after having fallen to 30 cents per lb early in the season, could have sympathetic impact on the local ruling prices at the fag-end of season.

Meanwhile, exporters have registered foreign sale contracts for 2,515 bales with the Export Promotion Bureau sold to Thailand, Taiwan and Philippines on May 23 and 24. Total foreign sales rose to 0.154m bales up to May 26, 2002.

Official spot rates did not show any change and were quoted at the overnight levels.

After several lean sessions, the ready business was brisk as about 15,000 bales mostly from the Sindh ginneries changed hands as under: 1,500 of Oderolal at Rs1,200; 1,200 bales, Mirpurkhas at Rs1,275; and 3,000 bales of Sanghar at Rs1,315 to Rs1,350, all purchased by exporters; 500 bales, Oderolal at Rs1,250; 2,350 bales, Shahdadpur at Rs1,450; 4,000 bales, Hingoja, Rasoolabad and some other stations at Rs1,475; and 1,600 bales of Oboro bank to bank at Rs1,475.