KARACHI, Oct 25: Cotton prices on Saturday crashed from the current higher levels on ginner panic-selling triggered by disturbing news from the textile export front amid reports of falling world demand.

The net fall during the session was of the order of Rs200 per maund, but later in the evening some of the deals in Sindh type were finalised at Rs2,500 per maund as compared to Friday’s Rs3,200, off Rs700.

Cotton prices had declined by Rs1,400 per 40 kg from the seasonal peak of Rs4,200 per maund to Rs2,800 on Saturday and are likely to fall further from this level, floor brokers said.

Market sources said there was a loud whispering in the market that a number of ginners and spinners were reluctant to honour their earlier signed forward deals owing to the market plunge beyond their perceptions.

“Though a bit late global meltdown seems to have overtaken the local cotton market,” analyst Naseem Usman said. “The fallout of the global financial turmoil has created a crisis-like condition in the cotton trade affecting ginner, grower and spinner all alike”.

But how the grower, having a little holding capacity, will react to the developing situation is not clear but if he holds back his phutti stock for better price the situation will further aggravate, he added.

The mid-season steep decline in prices has hit hard the grower who is hoping a better price after having massively invested in the form of expensive inputs.

The current season will go in the cotton trading history as the one which failed to ensure a fair price to the grower despite a below target crop, market sources said.

Official spot rates were lowered by Rs200 per maund at Rs3,000, the largest ever single-session fall noted in several years.

Ready business fairly active as spinners and mills lifted all the lots offered at the falling prices totalling 25,000 bales as under:

SINDH TYPE: 1,600 bales, Shahdadpur at Rs2,800 to Rs2,925, 1,600 bales, Tando Adam at Rs2,900 to Rs2,950, 1,000 bales, Nawabshah at Rs2,900, 1,000 bales, Khairpur at Rs2,900 to Rs2,950, 400 bales, Sanghar at Rs2,800 to Rs2,925, 600 bales, Dadu and 400 bales, Khipro at Rs2,925 and 400 bales, Mirpurkhas at Rs2,875 to Rs2,900.

PUNJAB IETY: 4,000 bales, Rajanpur at Rs3,000, 1,600 bales, Rahimyar Khan at Rs3,000 to Rs3,025, 400 bales, each Khanewal, Fazalpur, Uch Sharif, 800 bales, Liaquatpur and 200 bales, Pir Mahal at Rs3,000, 200 bales, Mamu Kanjan and 200 bales, Makdhoompur at Rs3,025 to Rs3,075, 400 bales, Arifwala, 200 bales each Fort Abbas, Jahania at Rs3,050, 200 bales, Lodhran and 400 bales, each Alipur and Ahmedpur East at Rs3,025 and 600 bales, Haroonabad at Rs2,900.