KARACHI, Sept 23: Cotton market on Thursday gave another improved performance as spinners continued to cover their forward positions against foreign sales of cotton yarn and cloth amid predictions of continuation of the bullish trend.

The market is expected to further heat up after the entry of the Trading Corporation of Pakistan (TCP) on the ready market as a second buyer to ensure fair price to the grower.

According to market sources the TCP announced its entry as a buyer of lint at Rs2,314 per 40 kg, which in per maund weight amounts to Rs2,159. Prices are expected to rise further as some of the ginners would like to sell its stocks to the TCP at slightly better rates.

According to earlier announcement by the government, the rates would remain valid for a week and would be re-fixed keeping in view the world prices, dealers said. The rates fixed by the TCP appear to be on the higher side compared to the prevailing market prices, which may not that attractive for the spinners and mills.

"Spinners are not that fool to opt for the TCP offer as they could buy any amount of lint from the open market at least for the next couple of sessions", a broker commenting on the TCP rates said.

However, the TCP's entry to stabilize prices halted the persistent decline in lint prices followed by panic among ginners and growers. "There is a scare among the spinners and mills on the near-term price outlook after the TCP entry and leading among them are trying to grab the floating stock at the current rates but in the process ginners have raised their asking prices", market sources said.

As a result some big-lots changed hands well over Rs2,100 per maund amid predictions of further rise in prices in the coming sessions. It was in this background that official spot rates were firmly held at the previous levels of Rs2,050 per maund, although most of the deals were done well above them.

New York cotton futures on the other hand rose further by 1.20 and 0.96 cents for both the ruling October and the distant December settlements at 51.40 and 49.09 cents per lb respectively. Ready off-take was fairly brisk as till late in the evening about 20,000 bales changed hands, the following being some of the notable deals.

SINDH TYPE: 2,000 bales, Nawabshah at Rs2,150, 1,000 bales, Shahdadpur at Rs2,125, 1,000 bales, Tando Adam at Rs2,100 to Rs2,125, and 1,000 bales, Mirpurkhas at Rs2,075 to Rs2,100.