KARACHI, Feb 25: Cotton market on Saturday showed an easy trend as ginners further lowered their prices in an apparent effort to clear the backlog of unsold stocks. Price decline was, however, orderly as there were no signs of panic selling by any of the central Sindh ginner. Most of Sindh ginners who have been holding stocks to sell them indulged in selling as prices did not rise as speculated by them.

Ginners said volatile world cotton markets amid conflicting reports about the supply and consumption figures did not allow the local market to follow a set course despite a short crop and spinners appeared to be in strong position and were setting the market trend.

However, the current decline in prices has unnerved some of the leading ginners whose unsold positions are fairly long and could last until the new crop from the lower Sindh ginneries arrives, they added.

Floor brokers said most of the lint in trade was of low-mic considered to be of inferior variety and was sold well below the official average rate of Rs2,450.

They said that an idea of falling selling rate may well be had from the fact that some lots were sold as low as Rs2,350 per maund while some better varieties were sold around Rs2,450 per maund.

But on the other hand southern Punjab ginners, who still hold long unsold positions mostly of fine lots, did not join their central Sindh counterparts and steadily held on to their positions, they added.

Some of them did lower their asking prices by Rs50 per maund but there was no scare among them and held on to their positions apparently awaiting improved prices after the fortnightly arrival figures were released by the Pakistan Cotton Ginners Association (PCGA) by late next week.

New York cotton futures showed fresh modest decline of 0.46 and 0.41 cents at 56.92 and 56.16 cents per lb for both the maturing March and the ruling May contracts respectively.

But on the other hand local official spot rates remained pegged at the last levels, although most of the deals were done well below them.

Ready off-take was modest and most of the deals were confined to central Sindh variety of low-mic. The following are some of the notable deals: 800 bales, Sanghar, 400 bales Jhole and 800 bales, Shahdadpur at Rs2,450, 533 bales, Hala at Rs2,350 and 400 bales, Uch Sharif at Rs2,525.