KARACHI, April 11: Cotton prices eased further on Thursday as ginners continued to indulge in hasty selling to get themselves out from the phenomenon of larger unsold stocks and falling mill demand.

Unlike the previous sessions, the local lint prices behaved quite the opposite of the New York cotton futures, which finished with limited gains at 38.14 an 39.88 cents per lb for both the ruling May and distant July contracts, up 1.28 an 1.42 cents per lb.

In normal trading sessions, local prices are influenced by the New York cotton futures but are dormant in the present context of production glut, market sources said.

The official rate committee further lowered spot rates by Rs25 per maund for the third day in a row at Rs1,700 amid predictions of fresh slashing in the coming sessions.

“The market appears to be the victim of slack mill demand rather than panic selling from the weaker ginners”, cotton brokers say adding “the snap withdrawal of the spinners seems to created panic-like situation among the ginners”.

The Trading Corporation of Pakistan (TCP) is in the market and is purchasing export quality lots at much higher rates (Rs1,855 per maund) as compared to those at which physical business is being transacted for the last couple of sessions.

Ginners say TCP’s presence is too modest to support the falling prices and they have to look for other channels, which could provide the needed relief.

The private sector exporters may have their own limitations in the backdrop of an uncertain world cotton outlook and that is perhaps their offtake is too small to influence the market trend, they added.

Floor brokers said those ginners whose holding capacity is fading under the weight of mounting bank interest rates have now opted to bail themselves out from the agony of higher unsold stocks.

Leading among the ginners are, however, holding on to their positions in the hope of a better future price outlook and that perhaps has slowed physical business.

Ready offtake was light but included some big lots as a leading spinner group tried to grab the floating stock of fine lots. The following are some of the deals, which gone through late on Thursday evening, all from Punjab ginneries: 800 bales, Muridwala at Rs1,725, 1,000 bales, Rahimyar Khan at Rs1,750, 2,300 bales, Bahawalpur at Rs1,800 and 800 bales, Khanpur also at Rs1,800.