KARACHI, Oct 20: Cotton prices on Thursday eased further as ginners continued to liquidate long positions followed by reports of larger arrivals of phutti into the ginneries. The bearish factor behind the ginners’ panic-selling was said to be fixing of phutti prices by the growers on the lower sides apparently some basic changes in yields during the second picking, brokers said.

The business activity seems to have been shifted to the Punjab cotton belt as for the last couple of sessions Sindh variety is neglected and bulk of the ready off-take was confined to the southern and central Punjab varieties.

Sindh type was traded between Rs2,260 to Rs2,375 per maund, while that from Punjab at an average rate of Rs2,350.

It is interesting to note that the local market is behaving quite the opposite of the New York cotton market. In normal trading conditions the local market generally follow the New York cotton market, dealers said.

Although there are two opinions about the size of the crop, no one including ginners and growers, are inclined to take even calculated risk about the future price outlook and played safe.

“The current trend is in favour of the spinners and mills and that is perhaps why no one among them is inclined to miss the bandwagon,” brokers said, adding “their forward positions are said to be now fully covered for the quarter ending December 31, 2005.”

Local spot rates were lowered again by another Rs25 per maund, while New York cotton futures finished higher by 1.08 and 1.01 cent at 54.29 and 56.14 cents per lb for both the ruling December and the forward March contracts respectively.

Ready off-take was active totalling about 8,000 bales, the following being some of the notable deals.

SINDH TYPE: 1,000 bales, Sanghar at Rs2,275 to Rs2,300, 200 bales, Mirpurkhas at Rs2,260, 200 bales, Tando Muhammad at Rs2,325 and 800 bales, Nawabshah at Rs2,375.