KARACHI, Oct 9: Cotton prices on Saturday rose modestly higher from the current lower levels boosted by reports of steady buying by the Trading Corporation of Pakistan.

Most of the deals in the Sindh and Punjab varieties were finalized Rs25 per maund higher as compared to the overnight rates as leading ginners opted for the TCP rather than selling to the spinners.

While a large business was reported at Rs1,850 to Rs1,925 per maund in Sindh varieties depending on the quality, Punjab type was sold around Rs1,925 to Rs1,950. But growers continued to sell phutti well below the support price of Rs925 per 40 kg at Rs800-825 in Sindh and Rs875-900 in the Punjab cotton belt, dealers said.

The panic created by the speculative forces making bumper crop an excuse has jolted the very foundation of the cotton trade and the disappointed grower is out to sell his produce well below his parity level, they said.

The cost of inputs including fertilizer has risen manifold during the last couple of years but growers failed to get a fair price since then the last season being an exception when they got more than a fair price, they added. "The TCP as a second buyer has halted further decline in prices for the time being but it appears pretty difficult to keep the status quo for a longer perid", analysts fear.

The crop is certainly on the higher side of the initial estimates and its speculated supply and demand factors will prevail in the final analysis in the month of December when the size of the crop will be final, they said. However, the panic among the growers persists as no one among them is inclined to hold on to his positions for even a week and try to dump the newly picked phutti into the ginneries and gets the price at the ginners' option, market sources said.

There was, therefore, no change in the official spot rates, although most of the deals were done well above them in physical trading.

New York cotton futures on the other hand turned mixed and while the maturing December showed a fresh fall of 0.2 cents at 47.35 cents per lb, the ruling March recovered 0.08 cents at 49.37 cents per lb.

Ready off-take was active totalling about 20,000 bales, the following being some of the notable deals:

SINDH VARIETY: 1,200 bales, Sanghar, 600 bales, Tando Adam at Rs1,825, 400 bales each Sarhari and Shahdadpur at Rs1,875.

PUNJAB TYPE: 400 bales, Bahawalpur, 500 bales, Mian Channu, 200 bales, Sadiqabad, 400 bales, Liaquatpur, 600 bales, Rajanpur and 200 bales, Sardar Lund at Rs1,925, 600 bales, Multan at Rs1,900 to Rs1,915, 400 bales, Jehania at Rs1,900, 400 bales, Bahawalnagar at Rs1,850 to Rs1,900 and 800 bales, Chistian at Rs1,900 to Rs1,925.