KARACHI, Aug 13: Cotton prices on Saturday fell further by Rs25 per maund for the second consecutive day, as ginners were not inclined to hold long positions because of the bearish future world market outlook.

A persistent decline in New York cotton futures below 50 cent benchmark and steady arrivals of phutti into lower Sindh ginneries are cited as main reasons behind the easy trend, brokers said.

They said the fall of New York cotton futures below the 50-cent mark could have a negative impact on the market conditions the world over, and the local market might not be an exception.

However, while the old crop rates are falling from the current highs, the new crop rates are still competitive viewed in the backdrop of supply and demand factors and could hold on to this level until ginning operations in upper Sindh and Punjab cotton belts resume, some others say.

“Unconfirmed reports originating from the Punjab cotton belt indicate a crop loss of about 0.3m bales owing to recent rain and floods in some of the cotton growing areas,” they said. ”If there is a real crop loss of the estimated amount, the local price outlook may remain bullish in the coming weeks also.”

Floods in the Indus river are reported to have damaged standing crops at the DG Khan cotton belt and some other areas along the river, but local ginners said the reports could hardly be a bullish factor for the market at least for the near-term.

However, the satisfying feature is that there are no reports of serious pest attack on the standing crop in any areas of the cotton belts and that could well mean that crop projections are on the higher side, market sources said.

Meanwhile, the TCP held its last auction for 81,000 bales on Aug 13 (Saturday), but details about bid prices or acceptance of bids were not immediately known, they said.

Official spot rates were further marked down by Rs25 at Rs2,250 per maund, but the new crop was traded well above them in the ready section.

New York cotton futures also suffered fresh fall of 0.75 cents per lb for both the ruling October and forward December settlements at 47.13 and 49.00 cents, respectively.

Ready offtake in the new crop was active totalling about 2,500 bales, the following being some of the notable deals: 200 bales each, Sultanabad and Mirpurkhas at Rs2,250; 200 bales, Mirpurkhas at Rs2,260, and 200 bales at Rs2,275; 200 bales, each Khipro and Sabghar at Rs2,300; and 200 bales, Sultanabad at Rs2,215, delivery on Sept 10, 2005.