KARACHI, Aug 26: Cotton prices on Friday were marked lower as some of the ginners sold in a bit haste in the backdrop of steady arrivals of phutti into the ginneries during the last couple of sessions.

The other destabilizing factor was that most of the growers fixed phutti prices at the lower rates apparently fearing further decline in view of larger than expected arrivals and ginners adjusted lint prices accordingly, brokers said. Most of the deals in the lower Sindh varieties were finalized between Rs2,255 and Rs2,280 per maund and between Rs2,235 and Rs2,375 in the central Punjab lint depending on the quality premiums, they said.

The New York cotton futures were also quoted lower by 0.48 and 0.56 cents at 46.52 and 48.11 cents per lb for both the ruling October and the distant December settlements respectively.

Market sources said the accelerated pace of arrivals of phutti into ginneries in no way reflected the larger crop ideas but it certainly showed the growers apprehension to sit on their unsold stocks for an indefinite period.

Although the reports about the size of the new crop are conflicting, the growers in lower Sindh, who resumed picking operations earlier, were worried over the steady rise in arrivals followed by growers’ intentions to keep clear of the newly picked phutti, they said.

Moreover, growers are also worried over the idea of a larger crop basing their assessment on the lower Sindh figures and most of them are selling their lint on spot basis fearing further decline in prices and that kept the market in minus territory, they said.

The crop is generally good in the lower Sindh cotton belt as there are no reports of pest attack in any part of the area because of early sowing and maturity.

Official spot rates were lowered by Rs25 per maund in line with those at which physical business is being done in the ready section.

Ready off-take was active as spinners and mills remained active buyers below Rs2,400 maund and lifted all the lots including some big ones at the asking prices. The following deals were gone through on Friday evening:

SINDH TYPE: 400 and 200 bales, Khipro and Jhole at Rs2,255, 1,800 bales, Shahdadpur at Rs2,260 and Rs2,265, 600 bales, Mirpurkhas at Rs2,240 and Rs2,260, 400 bales, Tando Adam at Rs2,265, 200 bales at Rs2,235, 200 bales, and Kot Ghulam Muhammad at Rs2,240.