KARACHI, Sept 10: Cotton prices on Wednesday eased further by Rs25 to Rs50 per maund depending on the quality of lint amid an actively traded session.

Bulk of the business was done between the Rs4,050 and 4,100 per maund, while some fine lots from the central Sindh cotton belt were sold at Rs4,125 but there was no bid above this level, floor brokers said.

“Persistent decline in New York cotton futures may be one of the reasons behind the current weakness of the local market,” a leading cotton analyst Naseem Usman said, adding the “other reason behind the fall may be high crop estimates of crop based on the current arrival figures.”

New York cotton futures on Wednesday fell further by 1.64 and 1.32 cents per lb a 61.66 and 64.28 cents per lb for both the October and the forward December contracts and indications are that the ruling settlement could breach through the 60-cent per lb barrier during the next couple of sessions and after that it could rebound.

Speculative and trade selling is said to be the chief reason behind the continued decline in prices, which had dropped over the last couple weeks from well over 70 cents per lb, partly owing to falling world demand.

But it is too early to speculate on an identical fall in the local prices because size of the crop is not yet clear amid loud whispering of damage caused by the pest attack in the Punjab cotton belt, some brokers said.

However, a leading section of spinners and mills is already on the probe mission and some of them had already signed forward deals below 65 cents per lb and may opt for fresh deals around 60 cents to balance their import inventory, they added.

Official spot rates were held unchanged at the last level of Rs4,100 per maund but some of the deals were done well below them.

Mill ready off-take remained active amounting to 20,000 bales, the following being some of the notable deals:

SINDH TYPE: 3,600 and 2,000 bales, Shahdadpur and Tando Adam at Rs4,100 to Rs4,125; 1,600 bales, Sanghar at Rs4,100; 1,000 bales, each Shahdapur Chakkar, Nawbab Shah and 1,800 bales, Mirpukhas at Rs4,075 to Rs4,100, and 800 bales, Khipro at Rs4,090 to Rs4,125.

PUNJAB VAIETY: 800 bales, Vehari at Rs4,050 to Rs4,075; 400 bales, Arifwala at Rs4,075; 1,000 bales, each Burewala and Khanewal at Rs4,100; 1,000 bales, Mian Channu and 800 bales, Chichawatni at Rs4,075 to 4,100; 600 each bales, Haroonabad and Bahawalnagar at Rs4,050 to Rs4,100 and Rs4,075 respectively.