KARACHI, Nov 22: Cotton prices on Friday eased modestly as some of the ginners holding long positions again indulged in hasty selling for no apparent bearish reasons.

However, spinners curtailed their daily intake in a bid to push prices further lower after staying out of the market. But growers were not that scared by the spinner counter moves.

Floor brokers said any price above Rs900 per maund is competitive for the growers as it cover their overheads as well as profit margins and will continue to set the direction for the market to follow.

But ginners are at a disadvantage as they are not getting competitive prices for their lint after buying phutti on an average at Rs925 per maund.

However, as their holding capacity is not that strong, they sell in the hope of competitive prices in future.

Although official spot rates were lowered only by Rs5, there was no major change in lint prices, which remained stable around the last level.

Most of the leading growers are facing liquidity problems as the sowing season of wheat has partially been started and they need both seeds and fertilizer to sow the new crop within the specified time.

Those who are small land holders are said to be the main sellers whose holding capacity is very limited and they need money after from farm purposes for their daily expenses also. Some of them sell phutti at lower rates, enabling ginners to balance their selling prices.

Meanwhile, reports coming from the southern Punjab ginneries indicate that the pace of arrivals of phutti into the ginneries is fairly steady and the first picking in some of the major growing areas is completed and second have started in some other areas.

Dealers said indications are that the crop will exceed the original target as the per acre yield in some of the areas is well below the previous average.

New York cotton futures were further declined by 0.52 and 0.46 cents per lb for both the ruling December and the forward March contracts at 47.29 and 50.58 cents per lb respectively.

Ready business was modest as till late in the evening about 15,000 bales changed hands as under:

SINDH TYPE: 600 bales, Sanghar at Rs1,955, 200 bales, at Rs1,975, 400 bales, Tharoshah at Rs2,050, 500 bales, Gothki at Rs2,085, 500 bales, Mirpur Mathelo at Rs2,085 and 400 bales, Dharki at Rs2,080.