KARACHI, Nov 18: The cotton market consolidated the overnight gains on Tuesday as spinners and mills continued to build up long positions ahead of possible entry of the Trading Corporation of Pakistan (TCP) as a second buyer.

Higher arrival figures for the fortnight (ending Nov 15) at 7.71m bales, showing an increase of 21.66 per cent or 1.3m bales as compared to the previous comparable figure for the same period last year did not immediately have a negative impact on the prevailing price line, said a leading cotton analyst Naseem Usman.

However, the shutdown deadline of ginners is ending on Nov 20, he said, adding indications are that the TCP may be in the market during the next couple of sessions and ginners may not opt for closure.

The TCP sources claim that they are ready any time to resume procurement operations after the official nod from Islamabad and will lift the specified quantity of fine lint to ensure a fair price for growers, they said.

As a result, prices of lint remained stable around the overnight levels of Rs3,100 per muand and fresh rise in prices will depend on procurement prices set by the TCP, they added.

But floor brokers said that despite talk of a lower crop, prices may not rise to the pre-reaction level of Rs4,000 per maund partly owing to weak world prices and partly to falling export of textiles owing to world recession.

Highly erratic price movements on the New York futures cotton market despite reports of short crop in the major producing countries may not allow fresh increase in line with the world parity levels, they added.

Meanwhile, spinners and mills did not take even a technical breather and lifted all the lots offered by ginners at and average price of Rs3,100 per maund.

The official spot rates were firmly held unchanged at the last level of Rs3,000 per muand amid active trading.

New York cotton futures on the other hand fell by 1.66 and 0.89 cents per lb at 39.37 and 41.62 for both the ruling December and the forward March contacts, respectively.

The following are some of the notable deals gone through in the ready section late on Tuesday evening:

SINDH TYPE: 1,000 bales, Khairpur at Rs2,800 to 2,900; 1,000 bales, Sanghar at 2,850; 400 bales, each, Mirpurkhas and Hyderabad and 200 bales, Nawabshah at 2,900.

PUNJAB VARIETY: 1,600 bales, Sadiaqbad at Rs3,100 to 3,150; 1,000 bales, Bahawalpur at Rs3,090 to 3,100; 2,200 bales, Khanewal, 1,000 bales, each Shehar Sultan, Rajanpur, Hasilpur, and Janpur, 2,000 bales, Ahmedpur East, 2,400 bales, Fazilpur, 800 bales, Chichawatni, 60 bales, Khanpur, 400 bales, each Rahimyar Khan, Alipur Jatoi, at Rs3,100; 800 bales, Fakirwali at Rs3,050; 400 bales, each Muridwala and Yazman at Rs3,075 to 3,090.