KARACHI, Oct 4: Cotton prices on Thursday showed softening tendency as larger than expected arrivals of phutti into the ginneries triggered selling by some of the ginners amid market talk of higher crop estimate.

Barring some fine lots from Khanewal, Rajanpur and Fazilpur areas which were sold around Rs2,920 per maund, bulk of the business from other stations was reported well below Rs2,900 per maund.

According to phutti arrivals data released by the Pakistan Cotton Ginners Association (PCGA) for the fortnight ended Oct 1, a total of 1.816m bales have arrived into the ginneries, out of which mills and spinners have purchased 1.460m bales and the private sector exporters 23,400 bales.

What worried ginners that led to fresh panic-selling was an unsold stock of 0.333m bales lying in their godowns as the pace of phutti arrivals was maintained, brokers said.

But a leading cotton analyst contradicted saying that the larger arrivals of phutti does not necessarily mean that the crop size is on the higher side and mentioned other reasons including some pressing financial needs of the growers forcing them to sell out their holdings in haste and get their fields vacated for wheat sowing amid fears of further decline in phutti prices.

Next fortnight’s arrival figures will give some correct idea of the crop size and the grower strategy behind dumping phutti into the ginneries, he added.

It was perhaps in this background that official spot rates were lowered by Rs25 per maund at Rs2,850.

New York cotton futures on the other hand resisted fresh fall and were quoted modestly higher by 0.13 and 0.19 cents per lb at 60.43 and 63.43 cents for both the ruling October and the forward December contracts respectively.

Ready business was maintained on the higher side totalling about 15,000 bales, the following being some of the notable deals.

SINDH TYPE: 1,000 bales, Shahdadpur at Rs2,890 to Rs2,900, 1,000 and 600 bales, Sanghar and Khipro at Rs2,865 to Rs2,875 and 1,000 bales, Mirpurkhas at Rs2,850 to Rs2,875.