KARACHI, Sept 17: Cotton market on Wednesday remained under pressure as lint prices were quoted further lower by Rs50 to Rs100 per maund owing partly to the weakness of the rupee and partly to fresh sharp decline in New York cotton futures.

Punjab ginners were worried over the developing situation and indulged in hasty selling mostly below Rs4,000, the lowest selling rate being Rs3,950 per maund.

But on the other hand Sindh type maintained its selling rate around Rs4,000 per maund or slightly above owing to its better quality.

Floor brokers said the renewed weakness of cotton trade appeared to be imported one owing to continued turmoil on the world markets after the bankruptcy of US investment bank, Lehman Brothers.

A leading section of ginners hastened to sell their long unsold positions in an apparent effort to balance their inventory as all the financial risks will go to their credit, they said. “The growers are out of the market as they are selling on spot basis and spinners and the ginners are in the real fight”.

“The growers are not inclined to take even a calculated risk in a market dominated by a few big operators and are said to be happy after selling their produce at Rs2,100 per 40 kg on the higher side and at Rs1,800 on the lower side during the last couple of weeks,” they added.

Cotton analysts said the developing situation was progressively heading in favour of the textile sector as both the local and foreign lint is now more competitive as compared to three weeks earlier.

The New York cotton futures below 60 cents per lb from the early seasonal highs of 76 cents and the local lint below Rs4,000 could well be an envy of any spinner or a textile mill, they said.

There was, however, no change in the official spot rates, which were held unchanged at Rs4,000 but in the ready section rates fluctuated variety-wise.

New York cotton futures on the other hand suffered fresh fall 1.65 and 1.52 cents per lb at 58.32 and 60.01 cents for both the ruling October and forward December settlements respectively.

Ready business was maintained on the higher side as spinners continued to build up long positions at the falling prices and as a result about 30,000 bales changed hands as under:

SINDH VARIETY: 2,000 and 1,400 bales, Shahdadpur and Sanghar at Rs4,000 to Rs4,050, 1,000 bales, Tando Adam at Rs4,000 to Rs4,025, 2,000 bales, 400, 600 and 800 bales, Mirpurkhas, Pathero, Hyderabad and Jhole at Rs4,000 and 400 bales, Sultanabad at Rs3,950.

PUNJAB TYPE: 1,000 bales, Khanewal at Rs4,025, 400 bales, Hasilpur at Rs3,990 to Rs4,025, 200 bales, Jampur at Rs4,010, 400 bales, Burewala at Rs3,950 to Rs4,000, 400 bales, Gojra at Rs3,950, 1,000 bales, Haroonabad at Rs3,975 to Rs4,000, 200 bales, Garma Raja at Rs3,975, 200 bales, Layyah at Rs4,000, 200 bales, Multan and 400 bales, Bakhar at Rs3,950, 400 bales, each Chichawatni and Pak Pattan at Rs3,975, and 600 bales, Mian Channu at Rs3,975 to Rs4,025.