KARACHI, Sept 30: Cotton market on Friday showed steady, which appears to be a belated positive reaction to the rising world prices followed by active mill demand. Both the official spot rates and physical trading prices were quoted higher by Rs25 to Rs50 per maund as spinners and mills rushed to lift the floating stock at the prevailing rates.

“Apart from higher world prices, the other contributory aiding factor is that the TCP has reactivated its procurement centres and will buy about 0.3m bales in the near-term”, floor brokers said.

The TCP has already announced to buy fine and contamination-free lint from the southern Punjab cotton belt at Rs2,269 per maund and will also pay a premium of Rs50 on quality lots meant for export markets.

The grower perception is that the market will heat up after the TCP re-entry as a second buyer signalling that the current prices could be the best for the spinners and mills to cover their positions.

As a result, spinners accelerated the pace of their daily intake at the prevailing prices, which are considered to be competitive and within their export parity levels, some others said.

They said that future price outlook would essentially be guided by the size of the new crop. “If the crop size is in line with official projections, the prices may remain stable and if there is any shortfall they could further rise.”

New York cotton futures maintained their upward drive for the last couple of days and were quoted higher by 0.40 and 0.50 cents for both the ruling October and the distant December contracts at 53.10 and 54.41 cents per lb respectively.

Local official spot rates were also raised by Rs25 per maund at Rs2,150.

Ready business was active as till late in the evening about 10,000 bales changed hands as under:

SINDH VARIETY: 2,000 bales, Nawabshah at Rs2,200, 1,000 bales, Mirpurkhas at Rs2,150 to Rs2,165, 1,200 bales, Sanghar at Rs2,160 to Rs2,170, 1,700 bales, Jhole at Rs2,160 to Rs2,175, 500 bales, each New Saeedabad, Matairi and Bandhi at Rs2,200, and 600 bales Shahpur Chakkar also at this rate, 200 bales, Khipro at Rs2,150 and 200 bales, Moro at Rs2,190.