KARACHI, Sept 28: Panic selling by ginners again dominated the Thursday’s cotton market, as steady arrival of phutti (seed-cotton) into ginneries continued to haunt both the growers and ginners.

“Both are said to be out to keep their slate clean in a market being driven by some of the leading growers who have virtually flooded the ginneries with their phutti on unfixed basis,” floor brokers said.

An idea of panic may well be had from the fact that some of the deals in the Punjab variety were finalised as low as Rs2,375 per maund.

The official reports from the Punjab government that the crop target would be met seem to have outwitted those who were trying to sell the idea of a short crop, they added.

But the prevailing nervousness among the ginners and growers appears to be psychological rather than real one, cotton analysts said. “The textile sector may be well below their annual consumption target even if the crop is in the line with the official target.”

According to official annual consumption figures by the textile sector, a consensus figure of 15m bales is close to its entire demand. The massive expansion and modernisation undertaken by the industry during the last five years, totalling Rs55 billion has significantly increased its lint intake.

Official spot rates were further lowered by Rs25 per maund at Rs2,475 per maund but some of the fine lots were traded above them.

New York cotton futures on the other hand showed fractional changes of 0.05 and 0.29 cent at 50.50 and 52.21 cents per lb for both the ruling October and the forward December contracts, respectively.

Ready offtake was on the higher side totalling about 15,000 bales, the following being some the important deals:

SINDH TYPE: 1,000 bales, Tando Muhammad Khan at Rs2,400 to Rs2,450; 1,200 bales, Tando Adam at Rs2,385 to Rs2,400; 800 bales, Sanghar at Rs2,400 to Rs2,425; 600 bales, 400 bales and 200 bales, Shahpur Chakkar, Sarari and NawabShah at Rs2,425; 200 bales, Buchari at Rs2,400; and 200 bales, Kot Ghulam Muhammad at Rs2,375.