KARACHI, Oct 24: Cotton prices on Wednesday eased from the seasonal highs as a section of ginners indulged in hasty selling at the overnight higher levels but failed to find many willing buyers.

The overnight price flare-up seemed to be triggered by fears about the crop size in the Punjab cotton belt but as there was no evidence to support the report either from the official or private sources spinners did not buy the idea and did not chase prices further higher, some dealers said.

Official arrival figures of phutti indicate that the crop is expected to be in line with the initial projection despite the fact that late pest attack has already caused some damage to the crop in the Punjab belt, they added.

Floor brokers said ginners were willing sell at Rs3,100 but spinners and mills stayed away on the perception that their weaker links may indulge in nervous selling.

As a result, some of the deals were done as low as Rs2,950 per maund on the lower side and Rs3,025 on the higher side, although ginners did not indulge in big-lot business and sold only retail lots hoping an increase in prices after the current confusion over the crop size is ended, they added.

However, the general perception is that the cotton trade may face crisis-like situation in the backdrop of reports of a short crop in the major producing countries.

Cotton analysts said the future consumption projections in the countries billed as end-product users had added to the prevailing uncertainty among the cotton trade stakeholders.

Official spot rates were firmly held at the last level of Rs2,875 per maund while in the ready section most of the deals were done on an average rate of Rs3,000 per maund.

But on the other hand New York cotton futures rose by 0.39 and 0.42 cents at 65.25 and 69.42 cents per lb for both the ruling December and the forward March contracts respectively.

Ready off-take was on the higher side totalling about 15,000 bales, the following being some of the notable deals.

SINDH TYPE: 2,000 bales, Sultanabad at Rs2,925 to Rs2,950, 200 bales, each Khipro and Sanghar at Rs2,925, 800 bales, Shahdadpur at Rs2,950 to Rs2,975, 400 bales, Nawabshah at Rs2,950 and 400 bales, Khairpur at Rs2,985 to Rs3,000.