KARACHI: Steady conditions prevailed on the cotton market on Tuesday as buyers indulged in short covering to meet their immediate needs. Overall, the undertone remained mixed to weak and outlook uncertain.

Slow off-take of yarn continues to depress cotton prices and has also started to impact phutti prices. The world leading cotton markets, including New York, remained under pressure.

China is expecting to harvest around 35 million bales while its consumption stands at around 50m bales. Market reports suggested that China has already signed deals for importing 1.2m bales with delivery in Jan 2019.

Trading on the ready counter was fairly brisk but prices remained at overnight level. Phutti prices came under pressure and were quoted at around Rs3,700 to Rs3,800 per 40kg for Sindh variety, Rs3,500 to Rs3,800 for Punjab quality and Rs3,800 to Rs39,00 for Balochistan quality.

The Karachi Cotton Association kept its spot rates unchanged. The following deals were reported to have changed hands on ready counter: 1,200 bales, station Shahdadpur, at Rs7,925-8,000; 1,000 bales, Sanghar, at Rs7,950-8,000; 1,600 bales, Tando Adam, at Rs7,950-8,050; 1,000 bales, Nawabshah, at Rs8,050-8,100; 1,200 bales, Khairpur, at Rs8,150-8,200; 200 bales, Dera Ghazi Khan, at Rs8,200; 400 bales, Fazilpur, at Rs8,250; 400 bales, Rajanpur, at Rs8,200; 400 bales form Taunsa Sharif, at Rs8,200; 600 bales, Yazman, at Rs8,150-8,200; and 400 bales, Vehari, at Rs8,075-8,200.

Published in Dawn, September 26th, 2018