KARACHI, Dec 24: Cotton market on Friday maintained a firm outlook followed by reports that the TCP will stay as a second buyer beyond the end of the current year in view of a bumper crop.

Earlier, there were reports that it will wind up its operations by Dec 31, 2004 after having met the initial procurement target of 2.3m bales, market sources said.

The TCP has signed deals with the ginners totalling 2.195m bales, of which 1.571m bales from the Punjab ginners and 0.609m bales from their Sindh counterpart up to Dec 23. Over 1.074m bales have already arrived in its godowns. But reports originating from the ministry of commerce indicate that it will continue to support the market during the next year to forestall any decline in prices after the final crop figure is out, they said.

An air of optimism prevailed among the local ginners who were in two minds "whether or not to hold on to their unsold positions amid lurking fear of panic selling by some of their weaker link, they said.

Although prices of inferior types, both from the Sindh and the Punjab ginners were lowered by Rs10, fine varieties continue to fetch higher rates ranging from Rs1,875 to Rs1,900 per maund depending on quality of lint.

Floor brokers predict prices could remain stable around the current levels even after the arrival figures of phutti for the fortnight ending Dec 31, are released by the Pakistan Cotton Ginners Association (PCGA).

However, spinners and mills are not inclined to sit on the sidelines even for a single day as they have still to go a long way to cover their annual lint consumption requirements.

Meanwhile, modest recovery staged by the New York cotton futures after persistent decline over the last couple of sessions was said to be another aiding positive factor for the local ginners.

Both the ruling March and the distant May settlements were quoted higher by 0.18 and 0.34 cents per lb at 42.90 and 43.49 cents respectively. Ready off-take was modest totalling about 20,000 bales, the following being some of the notable deals:

SINDH TYPE: 1,200 bales, Gothki, Dharki, Mir Mathelo and Pano Aqil at Rs1,925.