KARACHI, July 20: Cotton prices on Thursday eased from the recent higher levels as ginners were not inclined to hold on to their new crop stocks followed by reports of steady arrivals of phutti amid fears of further slashing.

No deal was again finalized in the current crop despite the fact that the official committee revised downward spot rates by Rs25 per maund to Rs2,500. But on the other hand some of the deals in the new crop, notably from the lower Sindh ginners were finalised around Rs2,400 per maund for ready delivery, brokers said.

“Although the new crop lint is far below daily needs of the spinning sector, it has a stabilising impact on the price line, they said, adding: “Spinners are neglecting unsold stocks and are picking up all the new crop lots at lower rates.”

However, southern Punjab ginners, who are still holding on to their unsold stocks of about 50,000 bales, are least worried over the developing situation on the cotton front after the arrival of new crop into the market.

“The inventory held is manageable and in no way caused pressure on our financial position,” says a leading ginner. “Spinners need it and they would come to use after the new crop euphoria ends.”

Meanwhile, reports reaching here from central Sindh and Punjab cotton belts indicate that each day more ginneries are resuming their operations, as the arrival of phutti into ginneries are increasing each day.

Official spot rates were lowered by Rs25 to Rs2,400 per maund, and dealers said prices could ease further as the picking operations of phutti were said to be at the peak level.

New York cotton futures maintained their upward drive and were quoted further higher by 0.50 and 0.53 cents at 52.90 and 54.70 cents per lb for both the ruling October and the distant December settlements, respectively.

Ready offtake in the new crop was light totalling about 1,000 bales all from lower Sindh ginneries as under: 200 bales, Mirpurkhas and Sanghar at Rs2,400 per maund.