KARACHI, Oct 7: Cotton prices on Tuesday eased further on near-panic selling by the ginners amid fears that global financial crisis could have negative fallout on the local cotton exports.

About 50,000 bales including some big-lots changed hands as spinners and mills were not inclined to take even a technical breather and lifted all the lots offered by the ginners for sales irrespective of quality premiums.

“It is God-sent opportunity for us to balance our inventories after having purchased lint as higher as Rs4,200 per maund earlier in the season,” said a leading spinner adding: “We know prices will fall further in the backdrop of global turmoil on the world commodity markets but we are not inclined to take risk about our future supplies.”

An idea of falling prices may well be had from the fact that some of the deals in the ready section were finalised as lower as Rs3,500 per maund and analysts say fresh pruning is on the cards in the coming sessions.

The current panic on the local market and among the growers and ginners was attributed to fresh limit-fall in the New York cotton futures considered as the price benchmark the world over, said a leading broker adding unabated speculative trade selling further accentuated the situation.

The New York cotton futures were traded further down by 3 cents per lb for both the ruling October and the distant December contracts at 52.41 and 54.41 cents, respectively.

Floor brokers said reports reaching here from the cotton belt indicate that the growers are holding back their phutti after the recent fall of Rs200 to 300 per 40 kg to sell it at the higher rates.

“Indications are that prices of both phutti and lint could rise from the current lower levels if growers held on to their stocks for a longer period,” they said.

Official spot rates were quoted at Rs3,700 per maund but in the ready section most of the deals were done well below them.

The following are some of the notable deals, which gone through in the ready section late on Tuesday evening:

SINDH TYPE: 3,000 bales, each Shahdadpur, Tando Adam, Sanghar, 2,000 bales, each Sultanabad and Mirpurkhas and Nawabshah at Rs3,500 to 3,350 to 3,600, 1,400 bales, Khipro at 3,500 to 3,550, and 200 bales, Sarhari at 3,600.

PUNJAB VARIETY: 1,800 bales, Bahawalnagar at Rs3,535 to 3,675, 800 bales, Pir Mahal at 3,600 to 3,625, 1,000 bales, Haroonabad at 3,500 to 3,600, 600 bales, D.G. Khan at 3,650, 1,200 bales, Arifwala at 3,550 to 3,675, 1,800 bales, Burewala and 1,200 bales, Pak Pattan at 3,550 to 3,650, 200 bales, each Kassowal and Chichawatni at 3,650, 200 bales, Muridwala at 3,640, 400 and 200 bales, each Layyah, Lodhran and Vehari at 3,600.