KARACHI, Aug 11: Cotton prices eased further by Rs100 per maund on Monday from the recent highs as ginners indulged in near-panic selling, fearing a further decline after the end of their strike.

“The stuck-up stocks of phutti owing to the strike are expected to flood ginneries,” said a leading ginner, adding: “the growers will try to sell their phutti at lower rates to clear their backlog, and lint prices may be adjusted accordingly”.

Spinners and mills, who have purchased lint at much higher rates during the last couple of weeks, hastened to lift all lots offered by the ginners at lower rates.

But some cotton analysts said reversal is attributed to market talk of higher production ideas despite reports of damage to standing crop but billed as well below the economic injury level.

The prices, during the last couple of sessions, had fallen by Rs250 per maund from an all-time peak of Rs4,300 per maund to Rs4,050, they said.

They said as grower is not inclined to hold long position any more, he is a ready seller around Rs1,850 to Rs1,900 per 40 kg from last week’s higher rate of Rs2,000 to Rs2,150.

But leading brokers predict the reversal is more psychological rather than real as worried grower tried to bail himself out from the unsold stocks but indications are that “he can be the ultimate gainer after the production projections for the month of August are out”.

Market sources said the current month is very crucial for cotton crop as it will finally signal whether or not the extensive spraying operations have controlled the pest attack.

Official spot rates were quoted lower by Rs100 at Rs4,050 per maund and brokers said they could ease further during the week as supply position will further improve after the end of the strike.

Ready business was modest and till late in the evening about 5,000 bales changed hands as under: 1,000 bales, Tando Adam at Rs4,050 to Rs4,100, 1,000 bales, Shahdadpur at Rs4,075 to Rs4,100, 600 bales, Sultanabad at Rs4,000 for Aug 25, delivery 800 bales, Sanghar at Rs4,075 to Rs4,100 and 400 bales, Bahawalnagar at Rs4,100 to Rs4,150.