KARACHI: The cotton market remained steady on Tuesday amid a decent flow of buying orders originating from some small and medium-sized textile spinning unit.

The buyers were attracted by falling cotton prices. Some market reports suggested that lower quality cotton was the main focus of buying from textile spinning mills.

The global trend in cotton prices also influenced domestic prices which moved lower. Falling cotton production figures did not induce buyers as they remained firm in their approach of short-term buying strategy.

With latest cotton production giving bleaker picture private estimates now put cotton production at less than 8.5 million bales against initial government projection of 15m bales, brokers said.

Textile units having remission facility on duty and taxes on imports have so far imported around 35,000-36,000 bales, while other units have to heavily depend on local cotton, they added.

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

The following deals were reported to have changed hands on ready counter: 1,000 bales, station Rohri, at Rs8,350-8,500; 1,600 bales, Khairpur, at Rs8,100-8,150; 3,000 bales, Sadiqabad, at Rs9,000; 1,400 bales, Khanewal, at Rs8,425; 800 bales, Faqirwali, at Rs8,250; 1,400 bales, Mianwali, at Rs8,000-8,150; and 400 bales Ahmedpur East, at Rs8,000.

Published in Dawn, December 4th, 2019