KARACHI, May 9: Cotton prices on Friday eased further as ginners indulge in selling amid fears of negative fallout of the falling New York cotton futures on the local trading.

However, the decline was modest as prices had fallen by Rs25 during the last two sessions and in no way reflect panic among the ginners as leading among them held on to their positions awaiting fresh developments on the world cotton markets.

As a result most of the fine varieties, including those claimed by the ginners of the southern Punjab cotton belt as contamination-free, were traded above the official spot rates, an average price being Rs2,525 per maund.

Some of the central Sindh ginners did, however, try to clear their unsold stock of inferior types between Rs2,250 and Rs2,375 per maund, which was readily lifted by the spinners.

Floor brokers said direction of the market was still unclear despite turmoil on the world cotton markets in the backdrop of steep decline in New York cotton futures and its likely negative impact on the textiles as a whole.

Spinners have now become more competitive after the decline of New York cotton futures below the 50 cents per lb and leading among them have already on the lookout of booking a substantial quantity at the prevailing world prices, they added.

“The fall in the world cotton prices from the current peak levels followed by the Sars-related speculative selling has pulled us out from the impasse of expensive lint prices,” claims a leading spinner, adding “leading among us have already made forward buying to cover short positions because of a pressure on local supplies.”

They said local prices could fall in line with the world rates in due course as ginners might not like to hold on to their positions owing to prevailing turmoil on the world markets.

According to market sources, the total unsold stocks with the ginners might be around 0.250m bales, which in turn did not pose any problem for them as they barely meet a week’s consumption needs of the spinning sector.

Official spot rates were lower by Rs10 per maund to Rs2,515, but fine types fetched higher price of around Rs2,525.

Ready offtake was modest as spinners purchased all the lots offered at the lower rates. About 5,000 bales changed hands as under: 1,100 bales, Sanghar at Rs2,375 to Rs2,400; 300 bales, Pithero at Rs2,250; 3,100 bales, Chinigoth at Rs2,525; 100 bales each from Kehror Pacca at Rs2,525 and Rs2,475, respectively.