KARACHI, April 4: Cotton prices on Thursday eased slightly from the previous levels amid fears that higher arrivals of phutti into the ginneries could work against the underlying sentiment in the coming sessions.

What seems to have sent a wave of pessimism among the ginners was above market expectations arrivals of phutti for the fortnight ended March 31, floor brokers said.

The market’s general perception about the crop estimate was between 9.8 million and 10 million bales, but the figure has, according to latest report, crossed the benchmark by a fair margin and could touch the high mark of 10.5 million bales as forecast by the crop assessment committee in its latest meeting.

The Pakistan Cotton Ginners Association (PCGA) is expected to come out with the final crop figure possibly by May 15, after all the ginneries will shut down their business for the current season ending on Aug 31.

“After successive fall in arrivals since the beginning of the season owing partly to late sowing because of irrigation water shortage, the maiden increase though is modest has sent a wave of optimism among the spinners”, claims a leading broker.

But on the other leading ginners who still hold long unsold positions are a bit worried amid predictions that prices could fall from the current level if the TCP did not intervene, he added.

According to official figures of 10.116 million bales, spinners have purchased about 8.5 million bales, leaving an unsold stock of 1.396 million bales with the ginners, which said to be on the higher side as compared to the last season’s.

Cotton analysts said higher crop figures are always welcome as they ensure comfortable supply to the textile sector at competitive rates and add to forex earnings and no body should be alarmed.

“Market forces will finally play a decisive role in determining the future price outlook, although the initial reaction of the weaker links among the ginners may be bearish”, they added.

However, there was no change in the official spot rates, although some of the deals in the ready section struck below the previous levels.

After having risen during the last couple of sessions, New York cotton futures fell by 0.43 and 0.44 cents per lb at 38.20 and 39.82 cents per lb for both the ruling May and the distant July settlements respectively.

Ready offtake was light as till late in the evening about 7,000 bales changed hands as under:

SINDH VARIETY: 400 bales, Bandhi at Rs1,675 and 2,000 bales, Khipro at Rs1,700 on credit.