KARACHI, Oct 12: Physical trading on the cotton market on Tuesday was relatively slow as leading ginners held on to their positions anticipating further increase in prices followed by strong presence of the TCP in the ready section.

Most of the deals were done around the previous levels in Sindh and Punjab cotton belts between Rs1,850 to Rs2,000 per maund depending on the quality and micronaire of the lint involved in trading.

Spinners also lent guarded support at the higher asking prices hoping modest easing in prices after the arrivals of phutti show further increase from the panicky growers, brokers said.

Although further decline in phutti prices has been checked, but most of the growers are still not getting a fair price and are selling their stocks below support price, they said.

"The middleman is claimed to be exploiting the small growers who prefer to sell their produce on cash basis at much lower rates with a view to save themselves from the procedural problems at the ginners end", market sources said.

The cotton trade may remain direction less during the coming weeks as the perception of a bumper crop and its impact on the local prices will continue to take its toll, they said. However, active participation of the TCP through its procurement centres has halted the market decline, although the grower is still at the receiving end owing to various factors including the manipulation of the middleman, they added.

But on the other hand cottonseed prices were held firm amid active buying by the crushers. Sindh type was quoted around Rs372 to Rs375 per 40 kg, while that of Punjab at Rs340 to Rs365. The difference in prices is attributed to higher carrying charges.

Official spot rates were firmly held at the last levels, although some of the fine lots were traded at much higher rates. New York cotton futures on the other hand remained under pressure because of speculative selling amid reports of higher production figures in the leading producing countries including the US, China, India and Pakistan.

Both contracts were marked down by 0.83 and 0.77 cents at 46.52 and 48.60 cents per lb for the ruling December and the forward March contracts respectively. Ready business was modest totalling about 10,000 bales, following being some of the notable deals.

SINDH TYPE: 400 bales, Mirpurkhas at Rs1,850 and 1,000 bales, Khairpur at Rs1,985-Rs2,000.