KARACHI, Feb 1: Cotton prices on Friday fell by Rs50 per maund from the recent highs as a section of ginners sold in haste to clear their backlog, but mill demand did not show any improvement.

After ruling unchanged for the last about two weeks in the absence of strong mill demand, official spot rates linked to quality premiums were lowered, floor brokers said.

But some others said the recent sharp decline in New York cotton futures below 70 cents per lb has made import a bit competitive from various destinations, they said.

“The local stuff is very much there in the ginner godowns,” said a spinner, adding “the important thing is to probe the world markets in an effort to get cheaper and quality lint”.

That is perhaps why there are not many buyers even after Rs50 per muand decline which makes a lot of difference as far as the export parity levels of spinners and mills are concerned, market sources said.

It is shocking for ginners that spinners seem reluctant to oblige them even at the lower prices, they said, adding “in normal trading conditions amid a short crop spinners and mills should have resorted to panic buying.

Focus now appears to be on the Indian lint where a team of local spinners is already probing the market which has allowed them to keep away from the ready business pending positive news from there, they said.

Official spot rates were revised downward by Rs50 per maund at Rs3,150 from the previous Rs3,200 in line with the quality of lint in trade.

New York cotton futures on the other hand were further marked down by 0.77 and 0.73 cents per lb for both the maturing March and the ruling May contracts at 67.79 and 69.70, respectively.

Mill ready off-take was modest totalling about 3,000 bales as under: 1,600 bales, Dadu at Rs3,150 and 1,000 bales, Chistian at Rs3,75 to Rs3,200.