KARACHI, Nov 29: Cotton prices on Tuesday suffered a modest fall of Rs25 as ginners sold in part their long unsold positions amid a modestly traded session and light ready offtake.

Floor brokers said the official decision to import 2.5 bales of cotton from various countries to make up a possible shortfall in the local production after the final crop size available seems to have worked against the underlying as jittery ginners sold in a bit haste.

But the decision is tied to the final crop and if any shortfall, the ginners should think of an immediate impact on their unsold stocks, they said.

“The 2.5m-bale is a massive quantity on the import list and spinners and mills may not need that much,” cotton analysts said. ”Even a half of it could upset the current market price to the disadvantage of both the growers and ginners.”

The market may remain unsettled for the next couple of sessions until the arrival figures of phutti for the fortnight ending Nov 30, 2005 are released by the Pakistan Cotton Ginners Association in the first week of the next month.

The falling mill demand reflects a relative pause both on local and foreign fronts about the decline in sales, which are well below the normal level at this time of the year and piling of stocks of finished goods, dealers said.

“But ginners should go by the future price outlook as the government has directed the TCP to procure 0.1m bales from the current crop apparently to make a viable buffer stock to meet a possible crop shortfall,” the analysts said.

The re-entry of the TCP into the market could give a needed boost to the market as well as the ginners, adding to their holding capacity and ensuring a fair price to the growers, they added.

Official spot rates were lowered by Rs25 per maund at Rs2,330, but in the ready section, some of the deals were done above it.

New York cotton futures also suffered a modest decline of 0.10 and 0.46 cents per lb at 48.85 and 52.15 for both the ruling December and forward March contracts, respectively, reflecting higher world crop predictions.

Ready business was light at 10,000 bales, all in Punjab varieties, the following being some of the notable deals: 1,000 bales, Jahania and 400 bales, Arifwala at Rs2,375; 1,000 bales, Rahimyar Khan, 800 bales Chichawatni and 400 bales, Muridwala at Rs2,375; 1,000 bales, Gojra at Rs2,375 to Rs2,400; 400 bales, Hasilpur at Rs2,385; 1,000 bales, each Lodhran and Sadiqabad, 1,400 bales, Khanewal and 400 bales, Chinigoth at Rs2,400.