KARACHI, Dec 14: Cotton prices on Wednesday eased modestly from the overnight higher levels as spinners made guarded covering purchases in apparent bid to forestall further increase, dealers said.

Unlike the overnight buying euphoria, the spinners and mills were bit cautious and did not indulge in hasty buying fearing further rise in prices and in unison played safe, they added.

While official spot rates were firmly held at the last levels, in physical trading most of the deals were finalized below the previous higher rate of Rs2,425 at Rs2,400 per maund, they said.

Having a fair crop idea, ginners are not in a hurry despite larger unsold stock lying in their godowns and held on to them on the perception that the prices are expected to rise further after the fortnightly arrival figures due possibly by the end of the current week are released by the Pakistan Cotton Ginners Association (PCGA).

“Both the buyers and sellers are adhering to their positions without interrupting the status quo,” market sources said. “But there is a loud whispering in the cotton circles that the crop may be short well below their current assessment.”

The arrival figures are expected to push the total well above the 9m bales mark for the current fortnight but after that it could suffer progressive decline in the subsequent fortnights as growers are selling phutti at around Rs1,100 or slightly above it.

The other contributory positive factor could be persistent increase in New York cotton futures and its likely positive impact on the local market in the coming weeks, they added.

According to market sources New York cotton futures above 50 cents per lb makes imports a bit costly and well above the spinners’ export parity levels.

Mill buying was modest as ready offtake totalled 15,000 bales, all from Punjab ginneries, the following being some of the notable deals: 1,000 bales, Jahania at Rs2,400 to Rs2,415; 2,000 bales, each Bahawalpur and Ahmedpur East and 1,000 bales, Nurpur at Rs2,400 to Rs2,425; 1,000 bales, each Rahimyar Khan and Sadiqabad at Rs2,415 to Rs2,425; 2,000 bales, Bahawalnagar at Rs2,350 to Rs2,375; 500 bales, Haroonabad at Rs2,350 to Rs2,375; and 600 bales of fine type from Bahawalpur at Rs2,450.