KARACHI, Oct 22: Cotton prices on Friday rose further as spinners continued to build up long positions at the current levels, fearing pressure on supplies owing to strong presence of the TCP and private sector exporters.

Unlike previous sessions, the cotton trade has undergone a major change owing to the presence of more than one buyer on the market as an active participant, brokers said.

Previously the cotton prices were generally set by the spinners and the mills being the sole buyers, with exporters generally adhering to the sidelines and the TCP was barred to enter the market until the size of the crop is known and the spinners have covered bulk of their seasonal consumption demand, they said, adding "but as the cotton trade is now free it is everybody's choice to play his card as he wishes."

But the grower remains at the receiving end, notably in the backdrop of a higher crop and the agencies assigned the job to ensure official support price to them seldom come to his rescue, says a leading dealer, adding he only gets a better price if the crop is damaged as he did last year.

The government has fixed the official support price for phutti during the current season but the growers are dumping their stocks between Rs750 and Rs825, fearing further decline in prices, he said.

Even strong buying made by the TCP to support them failed to check the decline as the official lint rate in not being reflected in phutti prices so far, the grower remaining the victim of a possible production glut.

During the last two sessions, lint prices have shown a modest recovery from the recent low of Rs1,750 as most of the deals in fine lots are being finalized at around Rs2,050 and indications are that phutti prices could also show an identical rise in due course, market sources said.

After having risen modestly during the last couple of sessions, New York cotton futures suffered a sharp decline on speculative selling triggered by reports of higher world production.

While the ruling December ended with a limit-decline of 2.16 cents at 45.81 cents per lb, the forward March was quoted lower by 1.46 cents at 45.59 cents per lb. But local official spot rates were raised by another Rs25 at Rs1,975 per maund in line with the ready rates at which physical business is being done for the last two sessions.

Ready off take was maintained on the higher side as the spinners were not inclined to take even a technical breather fearing further increase in prices. As a result another 20,000 bales changed hands the following being some of the notable deals:

SINDH VARIETY: 400 bales, Tando Adam at Rs1,925; 600 bales, Hingorja at Rs1,990; 400 bales, Rahimabad at Rs1,975; and 600 bales, Nawabshah at Rs2,000.