KARACHI, Sept 16: Cotton prices on Tuesday eased from the overnight levels apparently in sympathy with global markets which plunged after the reports of bankruptcy of a major US investment bank, Lehman Brothers.

A leading floor broker Naseem Usman said the limit-fall in the New York cotton futures which drove them to below the benchmark of 60-cent per lb sent shock waves among the other major world cotton markets and the local market could hardly be an exception.

The next couple of sessions could be very crucial for the local market and the future price outlook as global markets plunge could take others along with them to new lows.

New York cotton futures fell by 2.20 and 2.39 cents per lb at 59.97 and 62.13 for both the ruling October and the distant December contracts respectively.

He said local spinners and mills who were probing the foreign markets to import fresh consignments to make up the local market crop shortfall were taking stock of the situation and could place big import orders below the 60-cent per lb.

However, some others said local market might not be influenced more bearishly as the current plunge of the international markets was more psychological rather than real.

Moreover, the reports of a short crop owing to pest attack and untimely rain and may keep prices remain stable around the current levels in the sessions to come also.

It was perhaps in this background that the official spot rates were firmly held at the last level of Rs4,000 per maund.

Physical activity was maintained on the higher side as till late in the evening on Tuesday about 30,000 bales changed hands, with Sindh type having a premium over its Punjab counterpart.

The following are some of the notable deals:

SINDH TYPE: 2,000, 2,400, 2,000, 1,000, 200, 800, 400 and 400, Tando Adam, Shahdadpur, Sanghar, Nawabshah, Qazi Ahmed, Hyderabad, Sakarand and Shahpur Chakkar at Rs4,100, and 1,600 bales, Mirpurkhas at Rs4,050 to Rs4,075.

PUNJAB VARIETY: 1,800 bales, Khanewal at Rs4,050 to Rs4,075, 2,000 bales, Chichawatni at Rs4,000 to Rs4,075, 1,200 bales, Burewala at Rs4,000 to Rs4,050, 1,000 bales, Haroonabad and 200 bales, Arifwala at Rs4,025, 1,000 bales, Mian Channu at Rs4,025 to Rs4,050, 200 bales, Vehari at Rs4,015, 400 and 200 bales each, Bahawalnagar, Layyah and Bhakkar at Rs4,000.