KARACHI, March 25: Active trading was again witnessed on the cotton market on Saturday as spinners and mills again indulged in big-lot business at the lower prices. But the major buying thrust was on the low-mic lint both from the central Sindh and southern Punjab ginneries which spinners needed for producing low quality cotton yarn for some of their traditional Far Eastern trading partners, brokers said.

Fine varieties, notably from the upper Sindh and some lower Punjab ginneries were sold around Rs2,500 per maund depending on their staple length, they added.

“The current TCP sales drive seems to have taken steam out of the local market as most of the ginners, holding back an unsold stock of about 1.2m bales, are a bit jittery about the future price outlook”, predicts a leading cotton consultant, adding “they are holding on to their positions for better prices in the coming weeks”.

The TCP has floated another international tender for the sale of 50,000 bales after having successfully sold 50,000 bales in its March 16 auction amid hopes of still better price in the latest offer, he said.

The open bidding is expected to be held on March 31 at the TCP head office and market sources said spinners and mills are in a mood to actively Participate in it, he added.

Market sources said one of the reasons behind the prevailing sluggishness on the local market was the TCP as buyers were more interested in it because of quality factors.

They said foreign buyers may take keen interest in the current tender as higher New York cotton futures prices had made local benchmark prices more attractive as lint of all the grades was being offered giving a choice to the buyers to lift stocks according to their needs.

Official spot rates were held unchanged at the last levels but most of the deals in the ready section were done according to quality premiums.

Ready off-take was on the higher side as about 15,000 bales changed hands, the following being notable among them: 4,000 bales, Rajanpur at Rs2,500, 5,000 bales, Jalalpur and Lodhran at Rs2,375, 600 bales, K-68 at Rs2,450, 400 bales, Kandiro at Rs2,450 and 245 bales, upper Sindh at Rs2,430.