KARACHI, Feb 19: Cotton market on Thursday eased from the recent higher levels as some of the ginners sold odd lots apparently in an effort to stay clear in modest activity.

"It is of no use to hold on to unsold positions for a long time in highly volatile market," said a ginner, adding "there is a remote possibility of further increase in prices despite lower-than-expected arrival figures of phutti into the ginneries for the fortnight ended Feb 15."

Bulk of selling was confined to low-mic and inferior stuff, notably from the central Sindh ginners, but no one among the leading ginners holding fine lots is inclined to sell below the higher level of Rs3,250 and Rs3,300 per maund, he added.

Some of the inferior varieties were sold at as low as Rs2,650 per maund, while some other around Rs2,810 depending on the quality of lint and its mic, dealers said.

However, the lint from the southern Punjab, which is billed as contamination-free is selling around the previous levels, the highest being Rs3,300, they said.

Highly erratic price movements on the New York Cotton Exchange was another destabilizing factor, never allowing those ginners still holding large unsold stocks to plan on long-term basis.

Some of the ginners also fear that any further decline in New York cotton futures will make import of lint more competitive and have an eye on the world markets.

New York cotton futures on Wednesday finished off 0.80 and 0.63 cents per lb at 66.40 and 68.38 cents per lb, respectively, for the maturing March and the distant May settlements.

Official spot rates were lowered by Rs25 in line with the ready business in low-mic lots. Unlike the previous relatively dull sessions, activity on the ready market slightly picked up as some of the spinners resumed their covering operations at the prevailing prices.

As a result about 5,000 bales, both from the Sindh and Punjab ginneries changed hands as under:

SINDH TYPE: 200 bales, each Shahpur Chakker at Rs2,750 and Rs2,810; 200 bales, Sanghar at Rs2,650; 1,000 bales, upper Sindh at Rs2,950.