KARACHI, July 30: Cotton prices on Friday eased further as spinners lifted all the new crop lots offered by lower Sindh ginners at the lower levels.

Trading in the new crop of Sindh resumed at Rs32,325 as compared to the overnight close of Rs2,400, but as the session progressed and mill buying gained in stature, prices maintained their upward drive, touching the day's peak of Rs2,375 per maund. But as the ginners have to maintain their parity level between the prices of phutti and the lint, they further raised their asking prices but the spinners were not inclined to bid at Rs2,400.

Floor brokers said the general perception is that lint prices will fall further possibly to Rs2,250 per maund irrespective of the prevailing rate of phutti. They apparently base their future price assessment on the international prices and their negative impact on the end-products.

"I foresee a stand-off in the cotton trade as growers will not lower their selling prices from the current level of about Rs1,000 and prefer to hold back their stock rather than lowering prices," predicts a leading broker.

Having sold phutti at the highest-ever rate of Rs1,750 last season, the growers may not be in an obliging mood and will entertain further higher levels, he said and added this could cause an interruption in supply and demand and the consequent increase in prices.

"It is just the beginning of a new cotton season and being an uncertain crop, cotton could spring pleasant surprises in between, including the speculation of damage to the standing crop because of sudden pest attack," he says.

It was perhaps in this background the official spot rates for the current crop were further lowered by Rs25 for the 5th session in a row because of slack mill demand. New York cotton futures also fell by 0.72 and 0.69 cents per lb for both the ruling October and the distant December settlements at 43.73 and 44.12 cents, respectively.

Ready off take was light and was confined to new crop as under: 100 bales, Pithero at Rs2,325; 100 bales, at Rs2,350 and 100 bales at Rs2,375; and 300 bales, Mirpurkhas at Rs2,350.