KARACHI, Dec 20: Cotton market on Monday did not react bearishly to higher arrival figures of phutti into the ginneries as ginners held on to their positions indicating they were not inclined to lower their asking prices for the near-term.

Leading ginners hope the TCP, present in the market as price stabilizer, would come to their aid if spinners tried to cash in on the expected production glut, brokers said.

The post-arrival figure rates for both Sindh and Punjab varieties are being quoted at Rs1,600 to Rs1,925 and Rs1,700 to Rs1,925 respectively depending on quality. But on the other hand TCP has announced that it would be out of the market as a second purchaser as its allocation of Rs23 billion exhausts on Dec 31, 2004.

However, ginners hope the government is expected to enhance fund allocations keeping in view the final size of the crop. It was perhaps because of this fact that the market stayed a bit firm, although there was strong whispering in the rings that the situation could take an adverse turn if the TCP did not come to the aid of ginners, they said.

However, physical business shrank modestly as both the buyers and the sellers adhered to their respective perceptions and future price outlook but it is pretty difficult at this stage to predict about the future price outlook.

According to private surveys carried out by some of the agencies associated with the monitoring of cotton, the final crop figure could touch an all time high mark close to 14m bales, surpassing the previous record production of 12.7m bales in mid-90s and could lead to further price erosion in the absence of the TCP.

Official spot rates for average quality were, however, lowered by Rs25 per maund at Rs1,850. The following are some of the deals, which gone through late Saturday and on Sunday:

SINDH VARIETY: 400 bales, Mirpurkhas at Rs.1,650, 600 bales, Sanghar at 1,675.00, 4,000 bales, and upper Sindh at 1,925 to 1,940.00.