KARACHI, Dec 16: Cotton prices on Thursday remained steady as ginners held on to their unsold positions followed by reports that the TCP has further increased its procurement quota from each ginnery.

It has already raised its quota from the initial 7,000 to 10,000 bales from each ginner and now it is claimed 20,000 bales plus, dealers said adding "spinners are worked over the reports as it could well lead to further increase in prices in the coming weeks."

However, spinners and mills were closely watching the TCP moves and were in the market in a big way fearing further increase in prices. Moreover, they were not inclined to sit on the sidelines allowing fine lots slipping into the TCP godowns for export purposes.

"The heavy purchases being made at higher rates indicate that the TCP has some official signals about exports of the surplus stocks on government to government basis," said an analyst commenting on the aggressive purchase drive of the TCP adding that "in falling world market being victim of an expected global production glut, it appears pretty difficult to sell it at competitive rates".

But spinners are not watching the developing situation sitting on the sidelines they are very much in the market and indulging in big deals, notably for fine lots needed to spin higher counts of cotton yarn for the export markets, he said.

Meanwhile, arrival figures of phutti for the fortnight ended Dec 15, are due possibly by Friday, but indications are that irrespective of their size there may not any major negative impact on the prevailing ready rates.

Survey carried out by some of the leading private agencies put the figure around 10.150m bales, which is far below the mill needs for the current season. Official spot rates were further lowered by Rs15 for the average quality lint but fine lots were well above them.

New York cotton futures showed fractional rise of 0.7 and 0.13 cents per lb for both the ruling March and forward May settlements at 42.76 and 43.09 cents respectively. Ready business was active totalled 20,000 bales, the following being some of the notable deals:

SINDH VARIETY: 2,000 bales, K-68 sawgin at Rs1,925-1,940, 200 bales, Shahdadpur at Rs1,825, and 800 bales, Mirpurkhas at Rs1,575-1,650.