KARACHI, June 27: Cotton prices eased further on Friday as some of the ginners holding odd lots of lint sold in part their holdings apparently disappointed by the falling demand from the spinners and mills.

Stray lots changed hands around Rs2,475 per maund for the current crop both from the southern Punjab and the central Sindh ginneries, and brokers hope physical business could pick up as the selling prices are falling in line with their export parity levels.

What worried ginners were reports that more ginning mills have resumed operations, both in the lower Sindh and the central Punjab cotton belts, and spinners will opt for the new crop for quality reasons.

They, therefore, decided to resume selling after lowering their asking prices to which mills promptly responded and lifted all the lots offered below Rs2,500 per maund.

“Ginners’ holding capacity may not have faded as they do not have bigger unsold stocks in their godowns, but their perception of higher prices in the backdrop of a short crop did not prove correct,” they added.

Despite being under pressure of lower stock positions owing to higher world prices, spinners mostly played safe on the local market in an effort to forestall any price flare-up, they said.

Their absence from the ready market for weeks together outwitted the ginners who after awaiting the return of spinners and mills resorted to selling below Rs2,500 per maund, they added.

But the market sources predicted though ginners had resumed selling, they would not indulge in panic selling and liquidate their positions at will.

“After having met the bank demands, including adjustment of overdraft limits for the current fiscal ending June 30, ginners are now a little worried as the unsold stocks are now not a problem for them,” they said.

However, leading among them say the chances of an increase in prices appear to be remote and it is better to sell at the spinners option.

Official spot rates resisted fresh decline owing to revival of mill demand and are expected to stay unchanged at the current levels.

Ready offtake was light and confined to current crop as under: 700 bales, Khanpur at Rs2.475 and 200 bales, Mehrabpur in central Sindh also at the same rate.