KARACHI, Oct 6: Cotton prices on Friday eased further lower on active selling by ginners and spinners lifted all the lots offered below Rs2,500 per maund.

Active mill buying reflects some improvement on the export front both in terms of prices and fresh orders, says a leading broker, adding: “It is satisfying to note that speculators failed to sell the idea of a short crop.”

Indications are that in coming weeks supply and demand factors will be a dominating force setting the price trend irrespective of external factors, they added.While the Sindh type was traded around the overnight level of Rs2,450 per maund, the Punjab variety was available below Rs2,500, off Rs50 per maund as compared to previous day’s selling price.

Floor brokers attributed the fresh fall in the Punjab lint to quality premiums in the backdrop of pest attack in some parts of the cotton belt and reports of larger arrivals of phutti into the ginneries.

Much of the price decline is caused by hasty selling by the growers and as the ginners are not inclined to take any financial risk at this stage, lowered their lint prices to clear the backlog, they added.

Barring some fine lots which was traded at Rs2,525 per maund, all others were sold at around Rs2,475, and dealers said the prevailing confusion among the ginners could cause further fall in prices in the coming sessions.

For the first time during the last couple of week, big lot business was noted in the Sindh type, including a 3,000 bales deal at Rs2,440 to Rs2,450 because of quality factors, they added.

Official spot rates were, however, firmly held at the last levels, although some of the deals were done above them.

New York cotton futures on the other hand fell by 0.40 and 0.47 cents per lb at 48.50 and 49.69 cents per lb for both the maturing October and the ruling December contracts, respectively.

Ready offtake was maintained on the higher side thanks to active spinner and mill buying totalling 15,000 bales as under:

SINDH VARIETY: 3,000 bales, Shahdadpur at Rs2,440 to Rs2,450; 1,000 bales, Tando Ghulam Muhammad at Rs2,425 to Rs2,450; 600 bales, Moro at Rs2,450; 200 bales, Sanghar at Rs2,435; 400 bales, Bhiria City at Rs2,450; and 200 bales, Khipro at Rs2,400.