KARACHI, Aug 12: After having risen sharply higher during the last couple of sessions, cotton prices on Monday took a technical pause as spinners remained busy to take part in tomorrow’s TCP tender for both local and foreign buyers.

“At Rs2,300 per maund, the market seems to have taken a breather”, says a leading broker “whether to go up or sustain the current seasonal peak level is now appears to be its chief worry”.

Spinners including those holding short positions are also reluctant to go beyond this level in the hopes that a pick up in arrival of phutti into the lower Sindh ginners during the next couple of days could change the prevailing price outlook of both the ginners and the growers, some others said.

According to market sources the current speculative run and the consequent price flare-up may not be sustained in the coming weeks as spinners have second thoughts on buying at the higher level.

“Calculated the ruling world yarn prices, the export parity comes to Rs1,900 per maund”, one spinner claims “it appears foolish to chase the shadow of an imminent price flare-up in world cotton yarn prices in the backdrop of global shortage of the cotton crop”.

However, the reports of pest attack on the standing crop in some of the areas of central Punjab cotton belt could change the supply and demand situation but it is too early to speculate about it just now, he adds.

But some leading spinners fear that the new crop may be short of the target partly because of comparatively lower acreage and partly to reports of pest attack in some of the areas in the Punjab cotton belt.

The TCP has floated an international tender for 6,561 bales of fine quality lint on Aug 13, and for a substantial quantity for the local sales. As spinners are inclined to bid for all the lots being offered for sales, leading among them were conspicuous by their absence.

Until the outcome of the TCP tender and the bid prices is known physical trading on the open market may remain dull and prices could ease from the current higher levels in the absence of strong mill demand.

It was perhaps because of above mentioned-facts that the rates committee has increased the official spot rates by Rs50 per maund to Rs2,050.

Prices of phutti in the Sindh and the central Punjab cotton belt were quoted unchanged around Rs1,025 and Rs1,050 per 40 kg.

Ready business was slack as till late in the evening stray lots changed hands including 200 bales, from Mirpurkhas at Rs2,300.