KARACHI, July 20: Cotton market on Saturday showed firm trend but physical business remained slow as spinners are eyeing the lint under sale by the Trading Corporation of Pakistan.
Stray lots did change hands as some of the local spinners as well as those from the Punjab were active buyers and purchased most of the lots offered for sale by the ginners.
Leading spinners were, however, conspicuous by their absence as they are preparing themselves to participate in a fresh local tender floated by the TCP for another 20,000 bales of the current crop.
“The local and foreign tenders by the TCP to dispose of its entire inventory before the new crop arrives in a big way seems to have provided an alternate source of supply and they are happy over the TCP initiative”, says a broker but “ginners are not happy with TCP local sales as their competitive edge is eroding each session”.
The lint prices have been on the persistent upward track prior to resumption of sales by the TCP, which have risen to Rs1,975 from the lows of Rs1,550 but now they show uneven movements depending on supply and demand factors.
Ginners say the TCP unsold stocks are diminishing after each tender and they assume bulk of it will be cleared by the middle of the next month. The TCP has purchased about 0.257m bales, the net total being after the cancellation of many purchase contracts as ginners failed to deliver lots under trade.
Meanwhile, market sources said the TCP has sold about 20,000 bales to some foreign importers after they raised their bid prices to 35.75 to 37.75 cents per lb for both the short- and medium-long staple lint.
The selling rates appears to be in line with the prevailing New York cotton futures, which are now being quoted at 47.10 and 48.74 cents per lb for both the ruling October and the distant December settlements respectively. Both rose by 0.16 and 0.20 cents per lb for the third consecutive session.
On the export front, both the private sector exporters and the TCP registered export contracts for 1,145 bales and 5,750 bales respectively sold to Philippines, Thailand and Indonesia, with the Export Promotion Bureau on July 17 and 18.
Local official spot rates were quoted unchanged, although most of the deals in the ready section were done above them.
Ready business was light as till late in the evening about 2,000 bales changed hands as under: 500 bales, new crop based on lower Sindh phutti, processed by a Chichawatni ginners was sold at Rs1,875.
CURRENT CROP: 600 bales, Malsi at Rs1,925, 600 bales, at Rs1,800, and 200 bales, Vehari at Rs1,600.