KARACHI, July 10: Cotton market on Wednesday maintained firm trend but physical business was slow as spinners remained busy with the bid work against the local sales tender floated by the Trading Corporation of Pakistan (TCP).
Stray lots of inferior types did change hands as spinners who did not participate in the TCP tender sought supplies from the open market.
Floor brokers said some of the private sector exporters had re-entered the market apparently after securing fresh export orders from their traditional trade partners and were covering their forward positions.
But their major thrust is on the inferior lots, notably from the central Sindh ginneries. Most of their purchases are direct from the ginners, they added.
Meanwhile, the fresh local sales tender by the TCP, which opened on Wednesday evoked good interest among the spinners and most of them offered their bids to supplement their inventories.
Unlike the previous TCP tender meant for both the local and foreign buyers, the current one was actively traded, although bid prices were stated to be lower by Rs108 per maund as compared to the previous rates.
According to details of the bids received in Karachi Cotton Association (KCA), the purchase prices offered by the spinners for 1.1/32 type of lint ranged between Rs1,902 on the lower side and Rs1,927 on the higher side. The number of bales for sales was 6,000.
The highest bid for 200 bales for the 1-1/16 staple length lint was 2,102 but it may not be accepted as the quantity is well below the minimum number of bales. The average bids were said to be between Rs1,950 and Rs1,963 for 4,000 bales.
How many bid have been accepted or rejected by the TCP high-ups will be known during the next couple of days but all the bids are lower than the TCP’s benchmark price of Rs2,000 per 40 kg.
The official spot rates remained pegged at the last close but New York cotton futures recovered from the previous lows and were quoted higher by 0.9 and 0.62 cents per lb at 44.84 and 46.34 cents for both the maturing July and the ruling October settlements, respectively.
Ready offtake was slow as spinners remained with the TCP tender. Over 2,000 bales changed hands as under: 700 bales of Nayabad at Rs1,500 and 1,300 bales, Khipro also at the same rate.