KARACHI, Feb 12: Cotton prices on the Karachi Cotton Exchange on Thursday were quoted lower by Rs100 per maund as a section of ginners unloaded long positions owing to steep fall in the international market amid fears of fresh decline.

For the second session in a row, New York cotton futures fell further on trade selling followed by fear that falling world demand could ease prices in the coming weeks, floor brokers said.

Local fine lint prices, which had soared to Rs3,500 per maund during the last couple of sessions, were traded around Rs3,400, while medium staple varieties were quoted lower to an average rate of Rs3,300 per maund, they added.

Cotton analyst Naseem Usman said the current fall in prices appears to be sympathetic in line with New York cotton futures but ruled out any major fresh fall in the coming sessions.

“Essentially, the local prices are based on supply and demand factors,” he said adding: “As the crop is short of the target fears of pressure on future supplies will continue to inspire strong mill support leading to stable prices.”

But some others said the future price trend would be set by the spinners and mills whether or not they opt for foreign supplies to make up for the local crop shortfall.

They said a good number of viable spinners and mills, having ready export outlets are short of their annual consumption needs and may opt for imports if New York cotton prices fall further.

But others said some of the leading spinners are already engaged in probing mission through the agents and may sign stray deals at each dip.

The New York cotton futures fell further by 1.15 and 0.96 cents per lb at 45.83 and 46.99 cents for both the maturing March and the forward May contracts, respectively.

Official spot rates, on the other hand, were again firmly held unchanged at the overnight level of Rs3,400.

The following are some of the deals, which were gone through late on Thursday evening:

SINDH TYPE: 2,600 bales, Mirpur Mathelo at Rs3,350, 1,000 bales, upper Sindh, at Rs3,300 to 3,350, 600 bales, Mirpurkhas at Rs3,250, and 400 bales, Khanpur Mehar at 3,350.

PUNJAB VARIETY: 1,000 bales, Rajanpur, at Rs3,400 and 600 bales at 3,450, 600 each Ahmedpur East and Bahawalpur at 3,400, 600 bales, Rahimyar Khan at 3,350, 600 bales each, D.G. Khan and Sadiqabad at 3,350.