KARACHI, Dec 26: Steady conditions prevailed on the local cotton market where prices generally remained at the pre-holiday level on a fairly sustained mill buying.

With the war clouds looming over Iraq issue and fear of further appreciation in rupee value against dollar is keeping much of the demand away as mills also preferred to cover their immediate needs.

However, market sources said that there seems to be a shortage of quality cotton which is being sought after by leading textile groups to maintain the standard of their end product.

Sluggish trading in yarn market and somewhat depressed prices, nevertheless, continue annoy the millers who are finding it difficult to even meet their production cost, a floor broker said.

Despite the fact the arrival of phutti is reported to have slowed down during current fortnight (Dec 15) but a difference of Rs300 in prices between the domestic and world market prices is keeping the local cotton market at an edge, market sources said.

Ahead of Christmas and weekend closures the New York market was closed at around 52.17 cents for March contract and May at 55.07 cents per pound. Similarly, the ‘B’ Index finished at 56.50 cents per lb.

Meanwhile, good quality phutti is being quoted at around Rs1,025 per 40-kg thus showing a mild upward trend in prices over the past week. The ready board transactions for raw cotton are being quoted at around Rs2,150 per maund.

The Karachi Cotton Association (KCA) spot rates were raised by Rs15 to Rs2,075 per maund.

Over 11,000 bales reported to have changed hands on ready board on Thursday, with bulk of transactions materializing in Punjab quality cotton.

According to details 500 bales from station Jam Sahib were done at Rs2,075, 1,000 bales from Nawabshah at Rs2,075 to Rs2,100, 500 bales from Qazi Ahmed at Rs2,075, 1,000 bales from Khairpur at Rs2,100, 400 bales from Bochari at Rs2,075, 500 bales from Dharki at Rs2,150, 500 bales from Ghotki at Rs2,150, 2,000 bales from Sadiqabad at Rs2,150, 500 bales Rahimyar Khan at Rs2,125, 1,000 bales from D G Khan at Rs2,075 to Rs2,100, 2,000 bales from Rahimyar Khan at Rs2,135 to Rs2,150, 1,000 bales from Bahawalpur at Rs2,100, 600 bales Ahmed East at Rs2,100, and 200 bales from Burewala at Rs2,075.