KARACHI, Nov 7: Cotton prices on Friday modestly eased from the current peak levels as spinners withdrew to the sidelines anticipating further decline in prices in response to limit-fall in New York cotton futures.

Spinners were buyers around Rs3,300 for fine type of lint, which they need to spin higher counts of cotton yarn for the export markets, but ginners were not inclined to lower there asking prices below Rs3,400 per maund.

New York cotton futures on Thursday fell by limit-losses for both the ruling December and the forward March settlements at 75.52 and 78.49 cents per lb, respectively, off 2.30 and 2.15 cents per lb on strong speculative selling from the leading dealers followed by reports that China is not that short of its crop as initially feared.

However, it is in the world market to make up any shortfall after the final crop figures are known, local dealers said.

Any further fall in New York cotton futures could have a sympathetic negative impact on the local prices as spinners will opt for foreign stuff of better quality available at competitive prices, dealers said.

“Alternate sources of supply from the other countries always have negative impact on the local market and ginners seem to be now thinking on these line,” they said.

Unlike the previous seasons, local price trend is being guided by the world markets and that is perhaps why both the growers and the ginners are holding back their stocks of phutti and lint for still better rates.

Floor brokers also attributed the current slowdown in spinner buying to the promised official incentive package, which was decided in Thursday’s Islamabad meeting. The package is expected to bail out the textile industry from the prevailing impasse of a short crop.

According to market sources, some of the leading spinners had already made forward deals for about half a million bales from various foreign sources whenever prices fell from the current higher levels.

Some of the consignments are now on their way, while about 64,000 bales, had already arrived in the godowns of spinners since August 1 to October 31.

There was, however, no change in the official spot rates, which were quoted unchanged at Rs3,325 per maund.

As a result spinners and mills have slowed down their daily buying, hoping further decline in prices. The following are some of the notable deals finalized late on Thursday evening:

SINDH TYPE: 1,000 bales, Sanghar at Rs 2,950; 200 bales, Tando Adam also at this rate; and 200 bales, Bucheri at Rs3,125.