July 02, 2008	Wednesday	Jamadi-us-Sani 27, 1429

KARACHI, July 1: Cotton prices on Tuesday fell further by Rs50 per maund for the current crop on renewed selling by ginners followed by reports of steady phutti arrivals into the central Sindh and Punjab ginneries.

The downward revision of the official rates pushed the current crop prices lower by Rs100 or Rs200 per maund after having ruled at a premium as compared to the new crop for the last couple of weeks, floor brokers said.

The prices of new crop in the central Punjab cotton belt were quoted around Rs3,800 to Rs3,900 per maund for ready delivery, although some of the forward deals for August delivery were finalised around Rs4,200 per maund, they said.

“The lint prices are expected to fall further in response to a sharp decline in New York cotton futures and steady pick up in phutti arrivals,” some cotton analysts predict.

The New York cotton futures were marked down by limit-fall of 2.01 and 2.63 cents per lb at 71.40 and 75.48 cents for both the ruling July and the forward October contracts on selling prompted by reports of higher crop ideas in some of the major cotton producers, market source said.

Meanwhile, reports reaching here from the major cotton-growing areas indicate the growth of the new crop is normal and there are no reports of pest attack owing perhaps to highly warm weather.

Official spot rates were lowered by Rs50 to Rs3,700 per maund, but there was no business at the lower rate.

However, a deal in new crop from a Haroonabad ginnery was reported at Rs3,800 per maund.