KARACHI, Aug 30: Cotton prices on the Karachi Cotton Exchange on Thursday were quoted lower by Rs25 per maund following steady arrivals of phutti into the ginneries and fixing at the lower rates by the growers.

But in physical trading some deals were finalised as low as Rs2,775 per maund and brokers said prices could fall further if the growers continue to flood the ginners at the current speed.

Some ginners said the lower rates being paid to the growers are based on quality of the phutti, which is damaged to some extent as far as the fibre content is concerned during the recent rain.

The decline in prices in physical trading was welcomed by the spinners who purchased about 20,000 bales both from the Sindh and the Punjab ginners at the lower rates, floor brokers said.

They attributed the snap fall in prices to larger arrivals of phutti into the ginneries and growers hasty selling amid rumours that prices could fall further as the crop is not that short as earlier speculated.

The sudden change in basic market fundamentals based on latest production figures seems to put the spinners and mills on the winning side, who had been under pressure for the last about two months amid reports of a short crop, they added.

And that was reflected in their scramble to corner the floating ready stocks of lint at the lower rates about which they did not think a couple of week earlier, some others said.

Much of the price decline was confined to Sindh type as some of the lots changed hands as low as Rs2,775 to Rs2,950 per maund, which was selling around Rs2,975 and 3,000 a day earlier.

Official spot rates were lowered by Rs25 a maund but in the ready section most of the deals were done sharply lower.

New York cotton future also showed fractional fall of 0.06 cents for both the ruling October and the forward December settlements at 55.58 and 57.42 cents per lb, respectively.

Ready business was on the higher side totaling about 20,000 bales, the following being some of the notable deals:

SINDH TYPE: 1,200 bales, Sultanabad at Rs2,850, and 1,800 bales at 2,775 to 2,925, 1,200 bales, Mirpurkhas, at Rs2,800 to 2,925, 2,000 bales, Shahpur Chakar at 2,850 to 2,925 and 2,000 bales, Shahdadpur at 2,900 to 2,950, 1,000 bales, Sanghar at 2,875 to 2,900, and 1,200 bales, Tando Adam at 2,900 to 2,950.