KARACHI, Sept 1: Cotton prices on Saturday eased by Rs50 per maund as some of the ginners sold in haste their unsold stocks amid reports of steady arrivals of phutti into the ginneries.

But spinners and mills remained conspicuous by their absence apparently anticipating fresh decline in prices as some of the leading growers are dumping phutti in the ginneries mostly on unfixed basis hoping for a better market in the coming days, floor brokers said.

A leading cotton analyst, who toured the lower Sindh cotton belt on Thursday said Friday night’s rain should have pushed prices higher as picking operations of phutti has been suspended in some of the areas but their weaker links opted for fresh selling.

The perception of a higher crop after the washing away of Meelybug by heavy rains was said to be another negative factor fuelling panic selling by the ginners and the growers, he added.

But some others linked the fall in lint prices to an identical decline in phutti rates, which have fallen to Rs1,225 to 1,250 per 40 kg in Sindh and Rs1,325 to 1,350 in the Punjab cotton belt.

They said lint prices remained under pressure throughout the week as prices in Sindh fell by about Rs200 per maund at Rs2,800 to 2,825 from Rs3,000, while that of Punjab lint at Rs2,900 to 2,950 per maund from Rs.3,100.

Having a little holding capacity to hold on to their phutti stocks in a falling market, they said small growers generally liquidate their positions at the prevailing rates fearing further decline, said a leading floor broker.

He said the current increase in New York cotton futures may not affect the local either way at least for the near-term as the local rates are based on supply and demand factors.

It was perhaps in this background that official spot rates were revised downward by Rs50 per maund at Rs2,850 per maund from previous Rs2,900.

Ready off-take was light totaling about 4,000 bales, both from the Sindh and Punjab cotton belts including a deal of 1,000 bales from Tando Adam at Rs2,850 to 2,875 and about 3,000 bales in Punjab type at Rs2,900 to 2,950 per maund.