KARACHI, Jan 5: Trading activity on the cotton market on Wednesday was maintained on the higher side as spinners were not inclined to sit on the sidelines on the hope of fall in prices owing to higher phutti arrival figures.

Reports that the TCP would continue procurement of cotton to ensure fair prices to the growers and ginners was said to be one of the positive factors behind the heavy mill buying, market sources said.

"The strong presence of the TCP keeps spinners and mills at their toes all the time", they said "active daily off-take reflects this phenomenon". According to latest official figures, the TCP has procured 2.5m bales so far which is steadily rising each day because of its fresh contracts.

Floor brokers said ginners seemed to have fully digested the negative fallout of higher crop estimates and held on to their positions never allowing spinners and mills to manoeuvre the prevailing prices.

But rather some of them, notably from the upper Sindh cotton belt, managed to get higher prices for their fine lots, indicating an expected bumper crop of about 14m bales may not disturb the current status quo on the price front, they said.

That was perhaps why some of them who still hold a substantial quantity of unsold premium lots were asking for higher prices. Some of the deals were finalized around Rs2,025 per maund.

Instances of big-lot business were, therefore, not wanting as the leading spinner groups tried to corner the floating stock of fine lots before TCP signs fresh deals with the ginners.

Official spot rates were firmly held at the overnight levels but New York cotton futures rose by 0.37 and 0.43 cents per lb at 44.49 and 44.96 cents for both the ruling March and forward May contracts respectively. Ready business was active and totalled 20,000 bales, the following being some of the notable deals:

SINDH VARIETY: 1,000 bales of inferior quality, Shahdadpur at Rs1,725 to Rs1,750, 2,000 bales, Khairpur at Rs1,850 to Rs1,900 and 3,000 bales, upper Sindh at Rs2,000.