KARACHI: Steady conditions prevailed on the cotton market on Friday as the rising price trend coming to a halt.

Earlier in the session there was strong buying. However, the buying spirit tapered off as the day progressed, with spinners moving out of the ring on realisation that prices have gone beyond realistic level.

Phutti (seed cotton) prices remained steady. Market talks suggest that cotton prices are bound to fall in coming days.

The cautious approach adopted by textile mills on Friday strongly indicated their unwillingness to cross a certain price line which threatened their viability.

According to the US Department of Agriculture cotton exports dropped by 67 per cent over last week but this did not impact New York cotton market.

Meanwhile, at the International Cotton Conference 2018 held in Hong King, China has placed big orders for import of cotton from India. In another development, at the Shanghai Yarn Expo, Indian exporters managed to get huge orders from Chinese importers since Pakistan yarn was costlier.

The Karachi Cotton Association (KCA) spot rates stood steady at overnight level at Rs8,900 per maund.

The following deals were reported to have changed hands on ready counter: 1,000 bales, station Shahdadpur, at Rs8,400-8,500; 2,200 bales, Rahim Yar Khan, at Rs9,000-9,100; 2,000 bales, Sadiqabad, at Rs9,000-9,100; 2,800 bales, Fort Abbas, at Rs8,850-9,000; 1,200 bales, Mianwali, at Rs8,900-9,000; 1,200 bales, Liaquatpur, at Rs9,000; 1,000 bales, Haroonabad, at Rs8,950; 1,000 bales, Yazman, at Rs8,850-8,900; 1,200 bales, Ahmedpur East, at Rs8,850-8,900; and 1,000 bales, Fort Abbas, at Rs8,850.

Published in Dawn, October 20th, 2018