KARACHI, Oct 15: Cotton market on Friday showed steady trend as most of the deals in the ready section were done in line with the previous rates amid modestly traded session.

Leading spinners remained conspicuous by their absence owing to higher asking prices. But despite the strong presence of the Trading Corporation of Pakistan (TCP), distress signals from the farming community continue to pour in as phutti prices stayed well below the official support price of Rs925 per 40 kg, brokers said.

"Cotton is now appears to be the victim of a possible production glut as TCP operations so far have failed to restore grower confidence that is endeavouring to ensure a better price of their produce", says an analyst.

However, it is a gigantic task for any procurement agency to control the negative fall-out of oversupply despite stepped up buying by the consumers, he added. Higher crop estimates the world over was another destabilizing factor, which works against the efforts of second buyer and its role to ensure fair prices for the producers, he said.

Apart from some negative local factors falling world prices are taking their toll and keeping the market unsettled, brokers said. According to latest official figures released by the TCP, it has purchased so far about 0.270m bales of lint both from the Sindh and the Punjab cotton belts and its buying operations are being maintained at the higher levels.

They said further decline in lint prices was halted but ginners were not inclined to pass on the benefit to the growers who continued to indulge in panic selling after having dumped their stocks into the ginneries.

Phutti prices in the Sindh cotton belt was being quoted around Rs775 to Rs800 per 40 kg and in Punjab at Rs800 to Rs825. Official spot rates were, therefore, raised by Rs25 per maund in line with the overnight prices at which most of the deals were finalized, notably in the Punjab cotton belt.

The following are some of the notable deals: 1,000 bales, Nawabshah at Rs1,925 to Rs1,950, 1,400 bales, Shahdadpur at Rs1,900 to Rs1,925, 600 bales, Nayabad at Rs1,900 and 2,000 bales, Gojra at Rs1,975 to Rs2,000.