KARACHI, Sept 12: Cotton prices on Thursday showed a modest decline as reports of steady arrivals of phutti into the central Sindh ginneries generated a good bit of hasty selling from the ginners.

Trading in the ready section resumed around the previous level of Rs.2,000 per maund but as the selling pressure mounted by the mid-session prices started falling and some of the deals were reported as lower as Rs.1,950.

The price movements were highly erratic and fluctuated between Rs.1,950 and Rs.2,000 per maund depending on the quality but unlike the previous session, the high level of Rs.2,025 per maund was not touched.

Floor broker said the clear weather conditions almost in the entire cotton belt has accelerated the pace of picking operations as growers are trying to sell their product well in time around the current rates.

Although phutti prices had declined from the seasonal peak level of Rs.1,000 per 40 kg, they are still higher as compared to the official procurement price of Rs.800, they added.

While Sindh Phutti is being sold between Rs.870 to 880 per 40 kg, deals in the central Punjab variety are being finalized slightly above these prices.

During the last couple of sessions growers from the lower and central Sindh cotton belt have accelerated the pace of phutti arrivals and are selling it on spot basis without taking risk of forward trading.

Market sources predict as the supply and demand position will remain stable owing to higher crop ideas, there is a remote possibility of any major change in the ruling prices outlook.

“Lint prices are expected to fluctuate between Rs.2,025 to 1,900 per maund until picking operations of phutti resume in the southern Punjab cotton belt, which is considered to be a trend setter, being a major producer,” they added.

On the export front, the sailing has been a bit slow during the last about one week owing perhaps to price factor. However, some private sector exporters registered export contracts for 750 bales, with the Export Promotion Bureau on Sept 9 and 10, sold to Thailand and Taiwan.

Official spot rates were firmly held at the overnight level but are expected to revise downward in line with the ready rates.

Ready business was modest as till late in the evening about 5,000 bales, from the Sindh ginneries changed hands as under: 1,500 bales, Tando Adam at Rs.2,00, 400 bales, at 1,975 and 600 bales, at 1,990, 200 bales, Khipro at 2,000, 200 bales, Shahdadpur at 2,000, 500 bales, Sakrand at 1,985, 500 bales, Nawabshah at 1,985, 900 bales, Mirpurkhas at 1,950 and 600 bales, some other stations at 1,975.