KARACHI, Dec 20: Cotton prices eased further on the cotton market on Friday as mill demand failed to pick up owing partly to technical and and partly to quality reasons. For the second session in a row, ready business was light but unlike the previous sessions comprised both the Sindh and the Punjab ginneries.

But some analysts said spinners and mills had curtailed the daily intake owing to year-end consideration as leading among them were said to be taking stock of their inventories before resuming new year covering operations against their export sales of cotton yarn.

Although leading ginners are not discouraged by the absence of leading spinners as they know year-end considerations generally weigh down against the underlying sentiment, those who have a little holding capacity are get un-nerved and sell in near-panic, they added.

There are fears among the mills and spinners that quality of lint may not be that fine as that of second and early third picking of phutti but are not inclined to go beyond certain limits because of liquidity problems.

“Owing to year-end physical shipments against firm deals are yet to be completed by some of the exporters of cotton yarn and cloth, which in turn has a negative impact on their liquidity positions,” market sources said.

However, it is generally believed that spinners are expected to resume their normal covering operations by the first week of the next month as leading among have already indulged in massive buying, which also included big-lot business.

Meanwhile, reports originating from the private sector exporters indicate that the demand for the local lint is fairly active, notably from Bangladesh and most of the Far Eastern countries.

“Owing to higher world prices most of the traditional buyers of the local lint are in the market in a big way and have signed deals for a substantial quantity as local prices are bit lower than the prevailing on the other trading centres,” one exporter claim.

The TCP is out of the market because of stable prices but is very much in export business and making shipments of the old crop to its various trading partners, they added.

Official spot rates were, therefore, further lowered by Rs15 at Rs2,075 per maund. New York cotton futures also ruled easy on renewed selling.

The ruling March settlement ended lower by 0.46 and the distant May 0.38 cents per lb at 50.32 and 54.25 cents per lb, respectively.

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

SINDH TYPE: 200 bales from Sanghar at Rs1,900; 400 bales, Mirpurkhas at Rs1,800 to Rs1,850; 500 bales, Khairpur at Rs2,090; 1,000 bales, each from Dharki and Gothki at Rs2,100 to Rs2,125; and 500 bales from Oboro at Rs2,100.