KARACHI, Jan 11: Cotton market on Tuesday showed firm trend as ginners further raised their asking prices but spinners were reluctant buyers as they had to operate within their export parity levels.

But spinners and mills were worried over the developing conditions despite a higher crop as the market was gradually slipping into the hands of progressive growers and ginners who still hold modest unsold stocks of phutti and lint, brokers said.

According to market sources phutti rates had risen to Rs1,100 per 40 kg from the official procurement price of Rs925, although much of it had already found its way into the ginneries after lint prices fell to Rs1,650 per maund, they said.

Physical activity, therefore, shrank to modest proportions as sinners kept to the sidelines rather than chasing prices higher and resorting to panic-buying.

Ginners appeared to be in full control of the price situation and there was a loud whispering that some of them had raised their asking prices to Rs2,200 per maund but no spinner or mill was in obliging mood, dealers said.

"Whether or not the TCP will keep its presence felt during the coming weeks is unclear at this stage", they said and added that prices in physical trading had already reached close to its procurement rate of Rs2,159 per 40 kg.

Some spinners predict the TCP could enter the local market as a seller, unloading in part, out of its massive procured lint of over 2.5m bales to check further increase in prices to keep spinners competitive on the world markets.

"Spinners have to operate in WTO quota-free regime from the current year and they need official help for the supply of cheaper raw material so that they could compete with their rivals especially India and China", analysts said.

Official spot rates were, therefore, further raised by Rs50 in line with their counterparts in the ready section. New York cotton futures are also heading toward the 50-cent per lb mark on active global demand.

Both the ruling March and the forward May settlements were quoted higher by 0.68 and 0.70 cents per lb at 47.24 and 48.13 cents respectively. Ready off-take was modest as spinners kept to the sidelines owing to higher prices and as a result about 15,000 bales changed hands as under:

SINDH TYPE: 1,000 bales, upper Sindh at Rs2,100 and 400 bales, Nawabshah at Rs1,950.

PUNJAB VARIETY: 2,000 bales, Rahimyar Khan and 1,000 bales, Haroonabad at Rs2,100, 2,000 bales, Khanpur at Rs2,125 to Rs2,150, 2,000 bales, Bahawalpur at Rs2,150, and 200 bales, Sahiwal at Rs2,140.