KARACHI, June 25: Cotton market on Friday showed an easy trend as some of the ginners lowered their asking prices in apparent effort to get out of the long unsold positions before the arrival of the new crop from the lower Sindh cotton belt.

Reports that new crop phutti is steadily arriving into the lower Sindh ginneries was said to be the chief reason for the ginner decision to sell at the lower rates, brokers said. Phutti prices are being quoted at Rs1,100 per 40 kg but ginners are not fixing the rates and are keeping the new crop on an unfixed basis.

But as the ginners have decided not to resume new season's ginning operation before Aug 15, there could be a pressure on local supplies.

Local prices are moving in the opposite direction of the New York cotton futures, they said adding "when New York cotton futures rose, local prices fall, while they fall local lint becomes dearer."

Market sources said the holding capacity of some of the ginners is fading by each day owing to pressure from the banks to adjust the last year's overdraft limits to qualify for the renewal.

They fear some of the ginners may indulge in panic selling during the next week to meet bank demands and spinners seem to have a fair idea about the ginners problems and may lift bulk of the unsold stock offered by the ginners at further lower prices.

"The next week, the last of the current fiscal, could be be very crucial for those ginners whose holding capacity is not that strong and they may indulge in hasty selling below Rs3,000 per maund for fine lots," some dealers predict.

After having fallen below the 50 cent per lb mark during the last couple of sessions on heavy speculative selling, New York cotton futures on Thursday bounced back on strong covering purchases.

While the ruling July was quoted higher by 1.35 cents per lb at 49.30, still below the resistance level, the new crop October rose by 1.45 cents at 53 cents per lb, they said.

It was in this background that official spot rates were also lowered by Rs25 after several sessions in line with the ready rates at which transaction are being done.

Ready offtake was light totalling about 3,000 bales as under: 1,000 bales, Bahawalpur at Rs2,900, 1,000 bales, Ahmedpur East at the same rate, 400 bales, DG Khan at Rs2,950 and 200 bales, Sanghar at Rs2,350.