KARACHI, Aug 25: Brisk activity was witnessed on the cotton market on Monday as spinners and mills lifted all the lots offered by the ginners at the lower rates.

About 20,000 bales changed hands at an average rate of Rs4,050 per maund, although some of the fine lots were traded as higher as Rs4,100 per maund.

Unlike the weekend session when prices rose from the recent lower levels, the opening was a bit lower as some of the ginners lowered their asking prices as low as Rs4,000 per maund from Rs4,125.

There was no specific reason behind the near-panic selling by some of the ginners, but some analysts said sharp increase in arrivals of phutti both in central Punjab and lower Sindh cotton belt had caused the price decline, some floor brokers said.

What seems to have further accelerated selling was said to be fall in the selling prices of phutti from Rs2,000 per 40 kg plus to around Rs1,850 as growers were not inclined to hold onto their stocks and dumped phutti into the ginneries at lower rates, they said.

Spinners and mills were a bit happy over the sudden change in the market psychology hoping further fall in prices.

However, some analysts said the market would continue to show either-way price movements until the picking operations in the major cotton growing areas, notably the southern Punjab and upper Sindh, resume possibly by next month or early October depending on climatic conditions.

Official spot rates were firmly held at the weekend level of Rs4,125 per maund.

The following notable deals were reported by the brokerage houses to the KCA on Monday:

SINDH TYPE: 2,000 bales, Shahdadpur at Rs4,075 to Rs4,100, 1,200 bales, Tando Adam at Rs4,100, 2,000 bales, Sanghar at Rs4,075 to Rs4,100, 1,000 bales, Sultanabad at Rs4,000 to Rs4,075, 600 bales, Jhole at Rs4,075 to Rs4,100, 400 bales, Nawabshah at Rs4,100, 800 bales, Hyderabad at Rs4,075 to Rs4,100 and 200 bales, Kotri at Rs4,075.

PUNJAB VARIETY: 1,000 bales, Chichawatni, 400 bales, each Arifwala and Gojra at Rs4,075, 800 bales, Bahawalnagar and Mamon Kanjan at Rs4,050, and 800 bales, Burewala at Rs4,100.