KARACHI, Nov 18: Cotton prices on Monday declined further as ginners continued to unload their long stock positions fearing further decline because of quality factors.

Official spot rates were marked further down by Rs25 in line with the prevailing prices in the ready section, which were also quoted lower by the same amount.

In physical trading the highest rate at which some lots changed hands was billed at Rs2,015, per maund and the lowest at Rs2,050, which reflects a fall of about Rs100 per maund over the last couple of sessions. Central Sindh type was sold as lower as Rs1,940 per maund.

Market sources failed to pinpoint any specific reason behind the continued fall in lint prices and hasty ginner selling despite the fact that the ex-farm of the crop has officially been lowered to 10.1 million bales from the original target of 10.5 million bales.

But on the other hand growers are not inclined to lower their asking prices of phutti, which are stable above Rs900 per 40 kg against the official support price of Rs800.

“Whether or not ginners are maintaining their profit margins after having purchased phutti well above Rs900 per 40 kg is pretty hard to calculate,” one broker said, adding “but their current tilt to a major sell-off, without taking long position tells they may not be at a disadvantage.”

Spinners were, however, in no mood to miss the falling market and are lifting all the lots being offered by the ginners depending on quality and the micronaire of lint in trade.

Whatever the fact behind the current hectic trading may be, briskly traded sessions show all those who are in the cotton trade are happy as there is no dissenting voice so far either from the grower or the ginner.

“There may, however, be many behind the scene groaning by the affected parties, unlike the previous seasons,” said a broker, adding “everyone appears to be happy in his own way and that is good for the health cotton trade.”

On the export front, private sector exporters registered export contracts for 4,500 bales, sold to Indonesia on Nov 16, with the Export Promotion Bureau. Total foreign sales rose to 44,250 bales.

Ready offtake was active totalling over 20,000 bales, the following being some of the notable deals:

SINDH TYPE: 200 bales from Tando Adam at Rs1,940; 200 bales, Shahdadpur at Rs1,975; 200 bales, Sanghar at Rs1,990; 400 bales, K-68 Khairpur at Rs2,075; and 400 bales from Gothki at Rs2,110.