KARACHI, Oct 6: Trading on the cotton market on Monday resumed on a bearish note owing to negative fallout of the crisis on the world markets amid worries about the US economy as prices were further marked down by Rs100 per maund.

Bulk of the business in the ready section was finalised at Rs3,600 to Rs3,700 per maund depending on the quality of lint, while spot rates were lowered by Rs100 to Rs3,800 per maund.

The rates of phutti (seed-cotton) also showed corresponding fall and were quoted around Rs1,750 to Rs1,825 per 40 kg.

Over the last couple of weeks, prices of lint had declined by Rs600 per maund from Rs4,200 to Rs3,600 per maund as ginners indulged in hasty-selling after steep decline in the New York cotton futures, which are currently ruling around 55 cents per lb, said a leading cotton analyst Naseem Usman.

“The cotton trade the world over is passing through a major crisis as both the sellers and the buyers could not precisely decide how to behave in the backdrop of concerns about the US economy despite a massive $700 billion bailout package,” he said.

Thriving on a reports of a short crop, the local cotton market was ruling firm since the start of the new season as prices have touched an all-time peak of Rs4,200 in August and early September, but the global financial crisis also has its toll, market sources said.

The other negative factor which has eroded the international value of the local lint is the continued weakness of the rupee against the dollars and fall in world demand owing to crash of the New York cotton futures, they added.

Unlike the pre-eid trading, most of the deals in the ready section for both Sindh and the Punjab lint were done at the same rates. Earlier, the Sindh lint was sold at a premium of Rs25 to Rs50 per maund over its Punjab counterpart.

Ready business was on the higher side as pent-up mill demand owing to Eid holidays figured in prominently and a big-lot business was reported as leading spinners tried to grab the floating stock.

The following notable deals were reported on Monday evening:

SINDH TYPE: 3,800 bales Sanghar at Rs3,600 to Rs3,700, 3,000 bales, Shahdapur at Rs3,675 to Rs3,700, 1,000 bales, Hyderabad and 800 bales, Hala at Rs3,600 to Rs3,700, 800 bales, 400 bales, each Jhole and Shahdadpur at Rs3,700.

PUNJAB VARIETY: 1,000 bales, Burewala at Rs3,700 to Rs3,725, 1,200 bales, Bahawalnagar at Rs3,675 to Rs3,700 and 400 bales, Vehari at Rs3,700.