KARACHI, June 21: Physical activity on the cotton market on Tuesday remained slow as ginners further raised their asking prices in line with the surging New York cotton futures. But spinners and mills were not inclined to buy at the higher rates, apparently eyeing the next TCP auction on June 27 for 80,000 bales, dealers said.

They said the ginners might have in their godowns more than a few thousand bales of fine lots. Higher New York cotton futures prices have reinforced their perception about an identical rise in local prices at the fag-end of the season.

The ginners, who still hold stay stocks, appear to be in a mood to hold on to their positions until the TCP winds up its current selling operations and then to sell at higher rates during the month of August.

“Whether or not the new crop from lower Sindh ginneries, which is expected to arrive on the market by that time, depresses the price,” some others said.

However, the prevailing standoff on the ready front is not disturbing, as both the ginners and spinners are operating in line with their future perceptions about the supply and demand, they said.

The general perception is that lint prices may rise further in the coming months as consumption is expected to outstrip supplies by a big margin, as the post-WTO regime has changed the entire textile outlook, ginners said.

Moreover, the recent budget has given a free-hand to the textile sector both in terms of tax exemptions and incentive to boost export to $10bn plus during the current fiscal and that could well mean more lint, they said.

It was perhaps in this background that there was no change in the official spot rates and ready business remained light, with a couple of bales from the central Sindh changing hands.

New York cotton futures on the other hand rose further by 0.78 and 1.20 cents per lb for both the maturing July and the ruling October contracts at 48.16 and 51.20 cents, respectively.