KARACHI, Oct 22: Cotton prices on Wednesday eased further by Rs75 per maund as ginners holding long positions indulged in hasty-selling to get their stocks disposed of at the prevailing prices, floor brokers said.In physical trading, bulk of the ready business was done further lower around Rs3,200 to Rs3,350 per maund after phutti arrivals into the ginneries gathered fresh momentum, they said.

Analysts attributed the fall to highly erratic price movements being witnessed on the New York Cotton Exchange where future contracts fell by limit-fall, but finished with smart recovery the very next day.

Although the rupee has shown a measure of strength against the US dollar after the State Bank took some corrective steps, but spinners are not inclined to probe international markets for the import of lint owing to uncertain parity levels, they said.

“That is perhaps why spinners and mills remained active buyers at the falling prices as they provided them an opportunity to balance their stock positions,” they added.

Earlier in the season they had purchased cotton at an all-time higher rate of Rs4,200 per maund but prices had fallen since then to as low as Rs3,250.

“Lint prices could ease further owing to uncertain world markets, falling demand of textiles and changing exchange rates in terms of euro and the US dollar,” some brokers said, adding “higher arrivals of phutti into the ginneries could be an attributing bearish factor”.

Official spot rates were quoted lower by Rs75 per maund at Rs3,300 but in the ready section some of the deals were done on lower levels.

New York cotton futures on the other hand recovered by 1.54 and 1.17 cents per lb for both the ruling December and the distant March settlements at 50.60 and 53.56 respectively.

Ready business was maintained on the higher side totalling about 25,000 bales as under:

SINDH TYPE: 1,000 bales, Sultanabad and Mirpurkhas at Rs3,150 to Rs3,200, 1,200 bales, Shahdadpur at Rs3,250 to Rs3,300, 1,000 bales, Sanghar at Rs3,200 to Rs3,250, 1,000 bales, Tando Adam, 400 bales each Khipro, Hyderabad and Hala at Rs3,250.

PUNJAB VARIETY: 400 bales, Khanpur at Rs3,300, 400 bales, Rahimyar Khan and 200 bales, each Khanewal, Pir Mahal, Jahania and 400 bales, Faqirwali at Rs3,250 to Rs3,350, 600 bales, Pak Pattan at Rs3,275 to Rs3,350, 1,600 bales, Haroonabad at Rs3,300 to Rs3,375, 1,000 bales, Bahawalnagar at Rs3,300 to Rs3,350, 1,000 bales, Burewala at Rs3,300 to Rs3,325, 1,400 bales, Vehari at Rs3,300, 1,000 bales, Gaggon at Rs3,250 to Rs3,300, 1,000 bales, Liaquatpur, 200 bales, Depalpur, 600 bales, Rajanpur, 400 bales, each Muridwala and Sadiqabad at Rs3,300, 400 bales, Mongi Bungalow at Rs3,250 to Rs3,275 and 200 bales, Ghaziabad at Rs3,275.