KARACHI, Aug 2: Trading on the cotton market on Monday resumed on an easy note as lint prices suffered fresh decline in the absence of strong demand from spinners and mills.

Official spot rates were further lowered by Rs75 per maund at Rs2,275 but in the ready section new crop from the lower Sindh ginneries was sold at much lower rates. Phutti prices in the lower Sindh cotton belt have also declined from the seasonal peak level of Rs1,025 per 40 kg earlier in the season to Rs970 as some of the growers are fixing the rates of unsold stocks lying in the ginneries at this rate.

However, they are still higher by Rs45 per 40 kg as compared to the official support rate of Rs925 but indications are that the market could witness further easing in the sessions to come.

Although ginners appear to be in no mood to lower their selling prices below the Rs2,200 per maund level at least for the near-term, indications are that spinners are trying to push them down to Rs2,000 and cover forward positions at this levels, brokers said.

The next couple of sessions could be very crucial for the market direction as much will depend on the outcome of battle of nerves between the spinners and the ginners on the price front, they said.

"Unlike the previous season, cotton trade has slipped out of the growers' hand as they are now no longer market trend-setter", cotton analysts said. Unsettled world market because of higher production surplus, falling mill demand and export problems being faced by the textile sector are some of the bearish reasons behind the falling market, they added.

Meanwhile, Sunday's rain in the lower and central Sindh cotton belt is said to be beneficial for the standing crop, although it may delay picking operations for about a week as wet fields and moisture in the phutti damages its quality.

The condition of the crop in the central and upper Sindh, which is in flowering stage is reported to be satisfactory and there are no reports of pest attack. Ready off-take was light as spinners kept to the sidelines awaiting further fall in prices. The following are some of the deals in the new crop from the lower Sindh cotton belt: 300 and 200 bales from Sultanabad and Mirpurkhas at Rs2,200 each.