KARACHI, Aug 24: Cotton prices on Friday nosedived on hasty selling by ginners followed by reports of a substantial increase in arrivals of phutti into the Punjab ginneries.

Most of the deals both in the Sindh and the Punjab varieties were finalised at Rs2,900-Rs3,100 per maund as compared to Thursday’s Rs3,100-Rs3,300, showing a sharp fall of Rs200, dealers said.

Bulk of the selling was centered around the Sindh type which was traded as low as Rs2,900-Rs3,000 on panic unloading by the ginners.

Floor brokers said the snap fall in prices was not warranted by the objective conditions including rain in the Sindh cotton belt even on Thursday and picking operations of phutti remained suspended since the start of second round of monsoon rain.

But some ginners said as the rain was confined to the lower Sindh cotton belt, most areas of the central Sindh were dry and picking operations there were in progress.

“The growers of central Sindh dumped their phutti into the ginneries both on fixed and unfixed rates amid fears that fresh rains may damage its quality which resultantly push down its prices,” said a leading broker Naseem Usman.

Apparently, there is no bearish reason for the steep decline in prices for the second time during the current month, he added.

However, spinners remained active buyers at the falling prices and lifted about 20,000 bales including some big lots during the last two days.

Official spot rates were lowered by Rs75 per maund at Rs2,925 per maund, although most of the deals in the ready section were finalised at higher rates.

New York cotton futures were quoted higher by 20 and 25 cents per lb at 56.40 and 58.68 cents for both the ruling October and forward December contracts, respectively.

Mill off-take was on the higher side. The following deals were reported on Friday: 1,000 bales, Tando Adam at Rs2,900 to Rs3,000, 2,000 bales at R3,050 to Rs3,100, 3,000 bales, Shahdadpur at Rs3,075 to Rs3,100, 400 bales, Khipro at Rs3,075 and 400 bales, Mirpurkhas at Rs3,050.

Details of ready mill off-take from the Punjab ginneries were not available due to weekly holiday on Friday.