KARACHI, Nov 14: Cotton market on Friday showed steady trend as ginners did not resort to panic selling amid hopes that the Trading Corporation of Pakistan will resume lint procurement operations soon as directed by the government to ensure fair price to the growers.

Smart rebound staged by the New York futures for the second session in a row on revival of speculative demand was another aiding factor for the current market stance, analysts said.

Floor brokers said there were high hopes after the demand was aired at a press conference on Thursday by the chairman Pakistan Cotton Ginners Association (PCGA) to support the falling market prices.

“The piling up of unsold stocks of lint, to which well over Rs25 billion are tied, coupled with funding squeeze from the banks created more than one problem on the liquidity front,” the chairman said adding: “The majority of ginners are not in a position to make payments to the growers against their phutti stocks.”

Lint prices, which had dropped below Rs3,000 per maund for the second time during the last couple of sessions, sent shock waves among the ginners amid hopes that the TCP entry may be around.

Market sources said owing to heavy buying since the start of the season, mills and spinners had build-up long positions as a sole buyer and now is the time for the entry of TCP to protect the interests of the growers and the ginners.

According to PCGA the fair price at which the TCP could resume its operations could be around Rs3,200 per 40 kg for fine lint.

Official spot rates were, therefore, firmly held at the last level of Rs2,950 per maund but bulk of the ready business was done at Rs3,000.

New York cotton futures rose by 1.85 cents per lb for the ruling December and ended well above the benchmark of 40 cents at 41.30 cents, while forward March showed a fractional rise of 0.11 cents per lb at 41.86, narrowing the gap between the two to a modest proportions.

The following are some of notable deals finalised in the ready section on Friday:

SINDH TYPE: 1,500 bales, Sanghar at Rs2,800, 1,600 bales, Shahdadpur at 2,850, 800 bales, Saleh Pat at Rs3,050, and 1,000 bales, Rohri at Rs2,975.

PUNJAB VARIETY: 2,200 bales, Sadiqabad, 1,400 bales, Chooty, 3,000 bales, Muhammadpur, 1,400 bales, Ghazi Ghat, 1,000 bales, Fazalpur at Rs3,000, 200 bales, Lodhran,400 bales, Burewala at Rs2,900 to 2,950, 600 bales, Pir Mhala, 200 bales, Mian Channu, 600 bales, Bahawalpur, 400 bales, Fort Abbas, 400 bales, Liaquatpur, 600 bales, Ahmedpur East, 400 bales, Mongi Bungalow and 200 bales, and Taunsa, at 3,000.