KARACHI, Aug 29: Cotton prices on Thursday eased from the recent higher levels on active selling by ginners followed by reports of pick up in arrivals of phutti into the lower and central Sindh ginneries.

The interesting feature is that unlike the previous years, the local market is behaving just opposite the trend on the New York Cotton Exchange since the beginning of the current season. If the New York cotton futures are down, the local prices are up and vice versa, dealers said.

Previously, local prices followed the trend on the New York cotton market and were fixed at a discount of five cent per lb in export sales owing to medium staple length of the local stuff.

On Thursday, New York cotton futures soared by 1.88 and 1.84 cents per lb to 45.23 and 46.90 cents, while local prices fell from the overnight rate of Rs2,100 per maund to Rs2,000.

Most of the deals in the ready section were finalized below Rs2,100 per maund, the day’s lowest was, however, hit at Rs2,000 at which rate a substantial number of bales changed hands.

“Whether or not prices could moved down below the benchmark price of Rs2,000 per maund will largely depend on the size of arrivals of phutti into the ginneries and ginners will to hold the price line above it,” brokers say.

Lint prices, over the last couple of sessions had dropped by Rs200 per maund from the recent peak of Rs2,200 to Rs2,000, but it is pretty difficult to predict about the next move of spinners or ginners.

“Price had fallen to international level and there is a possibility of a great tussle between the ginners and the spinners in the coming sessions to tilt the balance in their respective favours,” market sources said.

However, much will depend on the holding capacity of the grower and whether or not he is willing to sell his phutti below the official procurement price of Rs800 per 40kg, they added.

Official spot rates were lowered by Rs25 in line with the prices at which physical business is being transacted, although some of the deals were done below this level.

Ready offtake was active as till late in the evening about 5,000 bales changed hands as under:

SINDH TYPE: 400 bales of Sultanabad at Rs2,000, 200 bales at Rs2,025 and 100 bales at Rs2,000; 600 bales, Tando Adam at Rs2,050 and 400 bales at Rs2,075; 600 bales, Shahdadpur at Rs2,050, 200 bales at Rs2,025, and 600 bales at Rs2,075; 200 bales, Nayabad at Rs2,050; 400 bales, Mirpurkhas at Rs2,025 and 400 bales at Rs2,050; and 200 bales of Khipro at Rs2,075.