KARACHI, Sept 16: Cotton prices on Saturday eased modestly as ginners continued to unload their long positions amid conflicting reports about the size of the crop.

The interesting feature was that the local cotton market was moving in opposite direction of the trend-setter New York cotton futures. While the NYCE futures fall it rises and vice versa which is a rare phenomenon in the local trading history.

During the previous seasons, local lint prices mostly followed the trend of the New York cotton futures with set price differentials at a discount of five cents per lb on the export markets, brokers said.

Although there was no panic among the Sindh ginners despite reports of damage to crop owing to early September rain and they were holding on to their stocks and did not indulge in panic-selling, Punjab ginners were selling in a bit haste, brokers said.“It appears to be the negative fallout from the Punjab cotton belt where ginners are bit panicky and are out to get of the market despite reports of damage to crop by pest,” they said.

During last couple of sessions, Punjab ginners have lowered their selling prices from Rs2,725 to Rs2,650 and Sindh ginners are now facing the negative fall-out in the form of lower prices.

However, unlike the previous sessions ginners offered to sell small lots of 200 bales in an apparent effort to hold on to their long positions in the hope of getting better prices, market sources said.

Official spot rates were lowered by Rs25 per maund in line with those at which physical business was transacted at Rs2,575.

But on the other hand New York cotton futures recovered 0.44 and 0.49 cents at 50.82 and 53.13 cents per lb for both the ruling October and the distant December settlements respectively.

Ready off-take was light totalling 7,000 bales as under.

SINDH TYPE: 1,600 bales, Shahdadpur at Rs2,575 to Rs2,600, 200 bales, Tando Adam at Rs2,550.

PUNJAB VARIETY: 200 bales, each Khanewal, Layyah, Jahania, Multan and Kassowal at Rs2,650, 200 bales, each Bahawalnagar, Chistian, Mongi Bangalow, at Rs2,675, 200 bales, each Haroonabad and Madarahssa, at Rs2,625.