KARACHI, Dec 21: Cotton market on Tuesday showed steady trend as ginners were in no mood to lower their asking prices despite reports of a bumper crop, well over 13m bales.

The price war between the ginners and the spinners is at its peak and the former appear to be in a commanding position as leading among them managed to sell fine lots around Rs1,950 per maund.

"The strong presence of the TCP on the market seems to have reinforced ginner perceptions about a fair prices irrespective of the size of the crop as it is very much in the market to stabilise prices", brokers said.

What seems to have encouraged them to sell lint at their parity levels was a big tally of the TCP, which has soared to about 2.1m bales and is expected to add more to its procured lint by the end of the current year, they said.

"TCP figure could swell to 2.3m bales according to present fund allocation," ginners said "but government could enhance its limit to support the market before the final crop figure is out."

Despite holding long positions, ginners are, therefore, a little worried over the developing situation on the supply and demand fronts and prefer to stay bullish on the strength of the TCP, market sources said.

Near-panic buying by the spinners and mills mostly at the asking prices of ginners reflects they have now a clear thinking that higher crop ideas may not trigger panic selling by the ginners, they said.

Official spot rates were, therefore, firmly held at the last close despite lower prices on the New York cotton market. Both the ruling March and May contracts were quoted lower by 0.14 and 0.22 cents per lb at 43.99 and 43.86 cents per lb respectively on speculative selling caused by higher local crop reports. The following are some of the deals, which gone through late on Monday evening and until mid-day on Tuesday.

SINDH TYPE: 4,000 bales, Gothki, Dharki, Mirpur Mathelo at Rs1,925 to 1,950, 400 bales, Mirpurkhas at 1,575 to 1,600, and 1,000 bales, Sanghar at 1,600 to 1,675.