KARACHI, Aug 23: Cotton prices on Friday eased modestly from the current higher levels as some of the ginners indulged in hasty selling followed by reports of higher arrivals of phutti into the ginneries.

The market reopened on a higher note, what the dealers called, an extension of the previous session’s firm closing but the mid-day reports of an increase of phutti into the lower Sindh ginneries un-nerved weaker links among the ginners who sold at the lower levels fearing further decline in prices.

Some of the deals in the lower Sindh lint were done around Rs.2,160 slightly below the overnight rate but thereafter prices continued to ease and most of the deals later in the evening were finalized at Rs.2,050 per maund.

Dealers said leading growers who were holding on to their positions for the last several days in anticipation of further increase in phutti prices were a bit disappointed followed by reports of fall in lint prices and hastened to sell in part their stocks.

“But I don’t think prices could fall below the resistance level of Rs.2,000 per maund as spinners holding short positions will remain active buyers until new crop from the southern Punjab cotton belt arrives on the market,” predicts a broker.

Market sources said the sentiment in part was also influenced bearishly followed by reports that picking operations of phutti in the central Punjab cotton have gathered momentum, having a negative impact also on the Punjab lint.

And added to it is highly volatile price outlook on the New York Cotton Exchange where speculative traders and bargain-hunters are keeping it unsettled after spreading conflicting rumours about crop projections in the backdrop of floods in China and reported damage to the new crop.

“They may show erratic price movements in the coming sessions also as supply and demand factors will continue to guide local prices,” they added.

However, official spot rates were further raised by Rs.25 in line with Thursday’s market prices but on the other hand New York cotton futures staged a rebound after last couple of sessions heavy battering. While the ruling October closed 0.89 cents per lb higher at 43.94, the distant December was marked up by 1.03 cents at 45.47 cents per lb.

Meanwhile, the TCP has registered export contracts for 14,800 bales with the Export Promotion Bureau on Aug 22, sold to foreign buyers in its previous tenders. The total foreign sales rose to 0.331m bales.

Ready offtake was active as till late in the evening about 2,000 bales, changed hands as under:

NEW CROP SINDH: 100 bales, Sanghar at Rs.2,160, 200 bales, 2,125, 200 bales, Khipro at 2,125, 100 bales, Shahdadpur at 2,100, 400 bales, Mirpurkhas at 2,100 and 100 bales at 2,050.