KARACHI, Oct 22: Cotton market on Tuesday showed steady trend as ginners were not inclined to lower their asking prices after having purchased seedcotton (phutti) well above the official procurement rates.

Arrivals of phutti into the ginneries are still far below the normal daily figure at this time of the season, reflecting that picking operations are yet to gather normal momentum, dealers said.

Trading activity was relatively slow as both the buyers and the sellers were still in post-Shab-e-Barat mood as most of them must have prayed a good part of the night.

But reports coming from the Punjab cotton belt indicate a large business is transacted daily late in the evening, full details of which seldom reach here, brokers said. “A couple of thousand bales ready business reported just gave a fair idea of the prevailing prices, not the exact amount of daily mill offtake.

According to some leading brokers about 40,000 to 50,000 bales change hands daily in the entire cotton belt at this time of the season.

The monthly intake of the textile industry has risen, on average, to about 0.9m bales and if last season’s total consumption figure of 12m bales is taken base level it could touch the high mark of a million bales, they added.

“Owing to a massive modernization and expansion programme undertaken by the industry during the last couple of years, more spinning units have resumed production increasing annual consumption of lint”, they said.

In physical trading, however, both spinners and ginners are maintaining a near-status quo as bulk of the business is being transacted below the highest rate of Rs2,025 per maund for fine lots.

On the lower side depending on quality some lots from the central Sindh ginneries are available at Rs1,925 and fine variety from the upper Sindh ginneries is being sold at Rs2,025 because of its staple length.

Meanwhile, whispering about the pest attack in some areas of the Punjab cotton belt continue to reach here, although till now buyers and sellers are not considering a market factor. The crop situation will be clear by the end of the next month after picking operations in the entire Punjab cotton belt are resumed.

Ready offtake was modest as brokers shut their offices early. However, leading among the brokers reported that about 2,000 bales changed hands as under: 200 bales, Jhole at Rs1.925, 200 bales, Tando Adam also at Rs1,925 and 200 bales Sanghar at Rs1,950. About 600 bales of K-68 from Mehrabpur, Rohri and some other stations changed hands at Rs2,025.

Details of physical business from the Punjab ginneries were not readily available but some brokers said most of the deals were again finalized at a uniform rate of Rs2,025 per maund, without 15 per cent sales tax.