KARACHI, Dec 19: Cotton prices on Wednesday eased from the current higher level by Rs25 per maund in the absence of support from the spinners and the mills owing to a long weekend ahead.

But in physical trading stray lots did change hands around the previous level of Rs3,100 from the Sindh ginneries apparently for ready delivery from the city godowns, floor brokers said.

Some of the ginners holding fairly long unsold positions tried to lessen their burden by reducing the asking prices but delivery problems kept spinners away and they did not make fresh commitments, they said.

A larger unsold stock of over 2m bales did worry ginners as a huge sum of Rs30 billion is tied to it and some of their colleagues are trying to sell at the prevailing prices to meet their bank obligations as the date (before Dec 31) of adjustment of overdraft limit is approaching, market sources said.

Some of them, having good record with the banks are expected to get renewed their overdraft limits but some others sell their long positions to clear the bank dues, they said.

However, they ruled out the possibility of further fall in prices as the law of supply and demand was already setting the market trend and a clear picture would emerge after the Eid holidays.

The market was expected to remain in a bullish frame of mind in coming weeks also despite instant shocks here and there caused by negative external factors, they said.

Official spot rates were revised downward by Rs25 per maund for an average quality lint at Rs2,975 but ginners were not inclined to sell their stocks at the lower rates.

New York cotton futures on the other hand showed fractional rise of 0.07 and 0.06 cents per lb at 65.72 and 67.18 cents for both the ruling March and the distant May contracts, respectively.

Ready business was light and was confined to stray lots from the Sindh ginneries as under: 400 bales, Shahdadpur, 264 bales, Jhole and 400 bales, Kot Lalu at Rs3,100.