KARACHI, Aug 22: New crop lint prices on Monday eased modestly from the weekend higher levels on active selling by ginners fearing further decline owing to a strong pick in arrivals of phutti into lower Sindh ginneries.

Unlike the weekend session, most of the details were finalized on an average at Rs2,260 per maund, as compared to the previous Rs2,250 and Rs2,300, depending on the quality of lint in trade, brokers said.

Ginners said the arrivals of phutti were a bit higher as growers were not inclined to hold on to their unsold positions and sold bulk of them on spot basis at Rs1,025 or slightly above, in line with fibre length.

The other contributory adverse factor was a fall in mill demand as the leading spinners adhered to the sidelines, anticipating further fall in prices in the backdrop of bearish world markets, they said.

“The lint price should have risen from the current level followed by reports of damage to the standing crop because of pest attack in the Punjab cotton belt and untimely rain but counter market forces it lower in the absence of steady mill demand,” brokers said.

But on the other hand, crop surveys conducted by some of the private agencies, including those led by the textile sector, show that there is ”no alarming damage to the new crop, rather it is progressing well in major growing areas.

The steady arrivals of phutti in the early sown cotton belt of lower Sindh also reflect that there may not be a major production shortfall during the season, as the crops in upper Sindh, southern and central Punjab are progressing well, and owing to extremely warm weather pest attack in some of the areas has not assumed an alarming proportion, some others claim.

However, rise and fall in prices at this time of the season is not unusual, as the market forces try to tilt price balance in their favour after giving or withdrawing tactical support, they said.

Official spot rates were, therefore, held unchanged, although in the ready section, most of the deals were done modestly lower but at higher rates than them.

Ready offtake was light totalling 2,000 bales, the following being some of the notable deals: 20 bales, each Shahdadpur, Mirpurkhas and Tando Adam at Rs2,260; 200 bales, Khipro at Rs2,250; and 200 bales, Sanghar at Rs2,265.