KARACHI, Oct 31: Cotton market on Wednesday showed firm trend as leading spinners remained active buyers at the prevailing rates anticipating pressure on supplies followed by reports that leading ginners are holding back their stocks.

But floor brokers said strong presence of the Trading Corporation of Pakistan (TCP), as a second buyer, has forced spinners to be back in the market and the consequent stability in prices.

In the evening, prices fell from the early higher levels as selling from some of the Punjab ginners intensified but it was well-absorbed, dealers said.

During the last week, spinners have curtailed their daily offtake because of falling cotton prices both on the local and the world markets but resumed their covering operations amid fears that the TCP may lift all the fine lots for export, they added.

However, the increase in prices is orderly and reflects that care is being taken to ensure equal benefit for those involved in the cotton trade in case of a bumper crop.

“I don’t think prices could hit the early season high mark of Rs2,000 per maund until export of textiles gather normal momentum”, says a spinner adding reports from foreign buyers are not that encouraging most of whom are holding back their buying offers.

He attributed the current progressive increase in prices to large TCP buying to ensure a competitive price for the growers but according to him the increase in lint prices is not fully reflected in phutti as most of the growers are selling well below the official procurement rates.

Meanwhile, reports originating from the textile sector indicate that standoff on the export front still persists as foreign buyers are seeking guarantees in respect of prompt shipments as stipulated in the contracts.

According to market sources most of the importers of textiles and cotton are fearing that the Afghan war could interrupt, though temporarily, physical shipments if it drags on for an indefinite period.

It was perhaps in this background that it is pretty difficult to predict about the direction of the market, which will largely be guided by the events in Afghanistan and the size of the crop, they added.

For the third session in a row, the official spot rates marked further higher depending on quality and so were in the ready section.

New York cotton futures on the other hand showed fractional either-way changes. While the ruling December contract fell by 0.1 cents per lb at 28.92, the distant March rose by 0.1 cents per lb at 30.58 cents.

Ready offtake was brisk totalling about 15,000 bales, the following being some of the important deals:

SINDH TYPE: 500 bales, Hala at Rs1,650, 500 bales, Nawabshah at Rs1,675, 500 bales, New Saeedabad at Rs1,675, 200 bales, Chundco (K-68) at Rs1,735 and 1,000 bales, Sanghar at Rs1,735 on credit.